If Both Producers and Consumers Believe That a Product's Price

question 104

Multiple Choice

If both producers and consumers believe that a product's price will rise in the future, then at the Present, demand_{-------------} and supply_{-------------} .

• A)increases; increases
• B)decreases; increases
• C)does not change; does not change
• D)increases; decreases
• E)decreases; decreases

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Definitions:

Credit Sale

A transaction where goods or services are provided to a customer with an agreement to pay at a later date, typically involving invoicing.

FOB Shipping Point

A term used in shipping agreements indicating that the buyer is responsible for the goods once they leave the seller's premises.

Prepaid Freight

Costs paid in advance for the transportation of goods, which are typically recorded as a prepaid expense until the goods are delivered.

Merchandise Return

The process of a customer returning previously purchased merchandise back to the business, often leading to a refund or store credit.