A Decrease in Demand for a Good Generally Implies That

question 148

Multiple Choice

A decrease in demand for a good generally implies that:

• A)consumers are willing to pay a higher price for each unit of the good.
• B)consumers are willing to buy larger quantities of the good at each price.
• C)the demand curve for the good has shifted to the right.
• D)the demand curve for the good has become steeper.
• E)the demand curve for the good has shifted to the left.

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Definitions:

Collection Of Receivables

The process businesses use to pursue payments from customers or clients who have purchased goods or services on credit.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services that have been delivered or used but not yet paid for.

Short-Term Liability

Financial obligations due within a year, such as accounts payable, short-term loans, and other similar debts.

Working Capital

Current assets minus current liabilities, indicating the liquidity available for a company's day-to-day operations.