A Decrease in Demand Would Be Represented by

question 53

Multiple Choice

A decrease in demand would be represented by

• A)the price of a good going from $3 to $4.
• B)an increase in the cost of resources used to produce the good.
• C)a movement along the demand curve.
• D)a shift of the demand curve to the left.

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Definitions:

Gross Profit

The financial performance metric that subtracts the cost of goods sold (COGS) from revenue, indicating how efficiently a company produces or sources its products.

Gross Margin

The difference between sales revenue and cost of goods sold, shown as a value or percentage, indicating the efficiency of sales relative to production costs.

Gross Sales

Gross sales represent the total sales revenue of a company without any deductions for returns, allowances, or discounts.

Periodic Inventory System

A method of inventory accounting where updates to inventory levels are made periodically at the end of an accounting period, rather than continuously.