The Law of Demand States That, Other Things Equal, When

question 259

Multiple Choice

The law of demand states that, other things equal, when the price of a good

• A)falls, the demand for the good rises.
• B)rises, the quantity demanded of the good rises.
• C)rises, the demand for the good falls.
• D)falls, the quantity demanded of the good rises.

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Definitions:

Sales Collection

The process of receiving payment from customers for goods or services sold, impacting a company's cash flow.

Master Budget

An integrated financial plan that includes all of the individual budgets related to sales, cost of goods sold, operations, inventory, and financing.

Credit Sales

Sales made by a business that are not paid for at the time of purchase but are charged to the customer's account to be paid for at a later date.

Production Budget

A production budget estimates the number of units that must be produced during a specific period to meet sales and inventory needs.