Which of the Following Correctly States the Law of Demand

question 26

Multiple Choice

Which of the following correctly states the law of demand?

• A) Ceteris paribus, as the quantity of inputs used to produce a good rises, more of the good will be demanded.
• B) Ceteris paribus, as the cost of producing a good rises, more of the good will be
• C) Ceteris paribus, as the number of sellers in the market fall, more of the good will be demanded.
• D) Ceteris paribus, as the price of a good falls, more of the good will be demanded.

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Definitions:

Net Operating Income

The earnings a business retains after subtracting operational costs, prior to the deduction of interest and taxes.

Total Contribution Margin

The difference between a company's sales revenue and variable costs, representing the amount available to cover fixed costs and contribute to profit.

Net Operating Income

A measure of a company's profitability excluding interest and tax expenses.

Operating Income

This is the profit realized from a business's operations, calculated by subtracting operating expenses from gross profit.