When Preparing a Trend Analysis, a Trend Percent Is Computed

question 96

Multiple Choice

When preparing a trend analysis, a trend percent is computed as:

• A)dollar change in item / current year.
• B)current year / base year.
• C)dollar change in item / base year.
• D)base year / current year.

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Definitions:

Downward-Sloping Demand

A market situation in which the quantity demanded of a good or service decreases as its price increases, depicting an inverse relationship between price and demand.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus what they actually pay.

Willingness to Pay

The maximum amount an individual or organization is willing to spend to acquire a good or service.

Consumer Surplus

The discrepancy between the financial amount consumers intend to spend on a good or service and the amount they end up spending.