When Certain Consumer Products Are in High Demand, Producers Might

question 9

Multiple Choice

When certain consumer products are in high demand, producers might buy extra materials and equipment and when demand subsides, producers will cut back on their material purchases. This describes a(n) demand.

• A) joint
• B) inelastic
• C) consumer
• D) fluctuating
• E) derived

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Definitions:

Financing Activities

Cash flow activities related to changes in the size and composition of the equity capital and borrowings of an entity.

Cash Receipts

The total amount of money received by a business during a specific period.

Interest and Dividends

Income received from investments, with interest earned on debt investments and dividends received from equity investments.

Operating Activities

Tasks and transactions directly related to the primary business functions of providing goods or services to customers.