Which of the Following Is Most Likely to Cause the Demand

question 16

Multiple Choice

Which of the following is most likely to cause the demand for ice cream,a normal good,to decrease?

• A)A decrease in the price of ice cream
• B)A decrease in the price of milk
• C)A warmer weather
• D)An increase in the number of consumers
• E)A decrease in consumer income

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Definitions:

Asymmetric Information

A situation in which one party in a transaction has more or superior information compared to another, often leading to an imbalance in the transaction.

Sole Proprietorship

The simplest form of business organization in which the owner is the business. Anyone who does business without creating a formal business entity has a sole proprietorship.

Professional Corporation

A type of corporation for professionals such as lawyers, doctors, and accountants, subject to specific regulatory provisions.

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities.