-Refer to the Above Information to Answer This Question

question 155

Multiple Choice

$\begin{array}{llcc} \text { 1. An increase in price: } & \text { A. An increase in the quantity traded: } \\ \text { 2. A decrease in price: } & \text {B. A decrease in the quantity traded; } \\ \text { 3. No change in price: } & \text {C. No change in quantity traded. } \\\end{array}$


-Refer to the above information to answer this question. What is the effect on a normal product of a decrease in incomes?

• A) 1 and A.
• B) 1 and B.
• C) 2 and A.
• D) 2 and B.
• E) 1 and C.

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Definitions:

FOB Destination

A term specifying that the seller is responsible for the goods and the cost of shipping until they are received by the buyer at the destination.

Ending Inventory

The cumulative worth of all remaining inventory a company holds at the conclusion of a financial period.

Merchandising Business

A type of business that purchases goods for resale to customers, aiming to sell the goods at a higher price than the cost to earn a profit.

Service Business

A business providing services rather than products to customers.