The Demand for a Product Is Likely to Decrease If

question 13

Multiple Choice

The demand for a product is likely to decrease if:

• A) the number of buyers in the market increase.
• B) the price of the product rises.
• C) consumers expect the price to fall in the future.
• D) the price of a substitute good increases.

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Definitions:

Equipment

Tangible property used in the operations of a business, such as machinery and tools, which are not intended for sale.

Incremental Borrowing Rate

The interest rate a company would have to pay if it borrows funds, used as a benchmark in lease agreements to calculate the present value of minimum lease payments.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

Liability

Financial obligations or debts owed by a business to others, which must be settled over time through the transfer of economic benefits.