If Price Increases and the Quantity Purchased Increases, We Know

question 138

Multiple Choice

If price increases and the quantity purchased increases, we know that

• A) supply increased.
• B) supply decreased.
• C) demand increased.
• D) demand decreased.

Assess the impact of adding new products to the product line on net income and other product sales.

Determine the maximum price to pay for an outside supplier versus producing internally.

Analyze the effects of discontinuing a department or product line on a company's overall net operating income.

Understand the principles behind cost-plus pricing.

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Definitions:

Predation

A biological interaction where one organism, the predator, kills and eats another organism, its prey, as a means of obtaining energy.

Biotic Potential

The highest possible rate of reproduction for a living being when the environment is most favorable.

Environmental Resistance

The sum of environmental factors (like predation, disease, and competition) that limit the growth of populations within an ecosystem.

Mortality

The state of being subject to death or the incidence of death within a population.