In Which Statement(s) Is "Demand" Used Correctly? (I) "An Increase

question 243

Multiple Choice

In which statement(s) is "demand" used correctly? (I) "An increase in the price of hamburgers will reduce the demand for hamburgers."
(II) "An increase in the price of hamburgers will reduce the demand for hamburger buns."

• A) in both statements I and II
• B) in statement I only
• C) in statement II only
• D) in neither statements I nor II

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Definitions:

Net Method

An accounting technique that records purchases after discounts, where the purchase price is reduced by the expected discount amount.

Journal Entries

Journal entries are the foundational recordings of all financial transactions in the double-entry bookkeeping system, indicating debits and credits to accounts.

Normal Balance

The side (debit or credit) of an accounting ledger where increases are recorded, reflecting the natural balance of an account.

Financial Statement

A formal record of a company's financial activities, including the income statement, balance sheet, and cash flow statement.