The Fact That When the Price of a Good Goes

question 407

Multiple Choice

The fact that when the price of a good goes up, people buy less of it is known as the

• A)law of supply.
• B)law of demand.
• C)concept of market equilibrium.
• D)need for inferior goods.

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Definitions:

Current Assets

Assets on a company's balance sheet that are expected to be converted into cash, sold, or consumed within a year or the business's operating cycle, whichever is longer.

Current Liabilities

Short-term financial obligations that are due within one year, indicating the amount a company owes its creditors and others.

Acid Test

A rigorous and conclusive test to prove the effectiveness or value of something, often related to financial solvency.

Debt Ratio

A financial ratio that measures the extent of a company's leverage, represented by the proportion of its total debt to its total assets.