If the Price of Crude Oil Fell Significantly, Which of the Following

question 47

Multiple Choice

If the price of crude oil fell significantly, which of the following would be most likely to happen?

• A) The price of air travel would increase.
• B) The demand for large cars would increase.
• C) The price of gasoline would increase.
• D) The wages of workers in the automobile industry would fall.

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Definitions:

Debit Memorandum

A document issued to signal a decrease in accounts receivable, often due to a return or an adjustment.

Accounts Payable

Liabilities or amounts a company owes to creditors or suppliers for goods or services that have been received but not yet paid for.

Sales Discount

A reduction from the listed or invoice price offered by a seller to a buyer, often to prompt early payment or reward bulk purchases.

Decrease Net Income

Any event or transaction that results in a reduction of the net income of a company.