With Reference to the Difference Between a Change in Demand

question 174

Multiple Choice

With reference to the difference between a change in demand and a change in quantity demanded, which of the following is true?

• A) If a good's price goes down, then demand for the good will decrease.
• B) If a good's price goes down, then quantity demanded will increase.
• C) If demand increases, then the demand curve will shift to the left.
• D) If price rises and quantity demanded decreases, then the demand curve will shift to the left.

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Definitions:

Initial Cash Investment

The amount of cash used to fund a new investment or project at its outset.

Salvage Value

The anticipated amount to be received from the sale of an asset when it is no longer useful.

Cash Flow

The total amount of money being transferred into and out of a business, which is used for assessing its liquidity, operational efficiency, and financial health.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity of the business.