When the Price of Apples Goes Up

question 167

Multiple Choice

When the price of apples goes up

• A) the demand for apples will decrease, ceteris paribus.
• B) the demand for apples will increase, ceteris paribus.
• C) the quantity of apples demanded will decrease, ceteris paribus.
• D) the quantity of apples demanded will increase, ceteris paribus.

---

Definitions:

Long-Term Debt

Borrowings and financial obligations of a business or organization that are due for repayment more than one year in the future.

Discounted Note

A financial instrument, such as a promissory note, that is sold or bought at less than its face value. The discount represents the interest or fees earned by the buyer of the note.

Interest Expense

The cost incurred by an entity for borrowing funds, typically reported on the income statement.

Notes Payable

Written promises to pay specified sums of money at future dates, representing liabilities or debt owed by a company.