Which of the Following Would Cause Consumer Prices to Drop

question 95

Multiple Choice

Which of the following would cause consumer prices to drop?

• A)Increased consumer borrowing
• B)Higher spending by consumers
• C)A demand for higher wages
• D)Hidden inflation
• E)Increased supply by business without increased consumer demand

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Definitions:

Variable Costs

Variable expenses directly linked to the operational scale of a business.

Variable Costing

Variable costing is an accounting approach that includes only variable production costs (materials, labor, and overhead) in product costs, omitting fixed costs.

Net Income

The total profit of a company after all expenses, taxes and costs have been subtracted from total revenue.

Variable Manufacturing Costs

Costs that vary directly with the level of production output, such as raw materials and direct labor.