If Price Falls, What Happens to the Demand for a Product

question 24

Multiple Choice

If price falls, what happens to the demand for a product?

• A) It increases.
• B) It decreases.
• C) It does not change.
• D) Uncertain--economic theory has no answer to this question.

Grasp the significance of setting both short-term and long-term goals.

Understand the characteristics and components of SMART goals.

Know how to seek and utilize resources for academic and career planning.

Recognize the importance of engaging with instructors and the college community for personal and academic support.

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Definitions:

Debits

Entries that increase asset or expense accounts, or decrease equity, liability, or revenue accounts, typically noted on the left side of an accounting ledger.

Credits

In accounting, credits refer to an entry on the right side of a double-entry bookkeeping system that increases liabilities, equity, or revenue or decreases an asset or expense account.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure a company's bookkeeping system is mathematically correct.

Ledger Accounts

Individual records that summarize transactions related to a specific account within the general ledger.