If the Number of Consumers in a Market Increases, the Market

question 70

Multiple Choice

If the number of consumers in a market increases, the market demand curve will

• A) decrease, which is a shift to the left of the demand curve.
• B) increase, which is a shift to the right of the demand curve.
• C) not shift, but rather this will just cause a movement along the demand curve.
• D) do none of the above.

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Definitions:

Net Present Value

A valuation method that calculates the present value of expected future cash flows minus the initial investment cost.

Capital Investment Project

A project requiring significant amounts of capital for the purchase, improvement, or maintenance of long-term assets to generate future benefits.

Cash Flows

The sum total of currency transactions inbound and outbound in a firm, markedly affecting its cash-on-hand.

Present Values

The today's value of a sum of money or cash flows expected in the future, calculated using a designated return rate.