-What Is the Effect of an Increase in the Price

question 133

Multiple Choice

-What is the effect of an increase in the price of coffee?

• A)It will lead to an increase in the demand for tea.
• B)It will lead to a decrease in the demand for tea.
• C)It will have no effect on the tea market.
• D)It will increase the demand for coffee.

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Definitions:

Return On Investment (ROI)

A financial metric used to evaluate the efficiency of an investment, calculated by dividing the benefit (return) of an investment by its cost.

Net Operating Income

The total earnings generated from a company's operations, excluding taxes and interest.

Investment Opportunity

A situation or option through which an investor can potentially increase their wealth by allocating resources in a way that generates returns.

Margin

Net operating income divided by sales.