Which of the Following Is an Example of a Demand

question 83

Multiple Choice

Which of the following is an example of a demand shock?

• A)a large increase in the price of oil
• B)the introduction and greater availability of credit cards
• C)a drought that destroys agricultural crops
• D)unions obtain a substantial wage increase

Recognize transactions that do not affect cash and how they are reported.

Comprehend the impact of changes in current asset and current liability accounts on cash flows from operating activities.

Understand the classification of different types of cash flows in the statement of cash flows.

Identify the components of cash flows from operating activities using the indirect method.

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Definitions:

Charitable Giving

The act of giving money, goods, or time to the unfortunate, either directly or by means of a charitable trust or other worthy cause.

Income Effect

The change in consumption resulting from a change in real income, which can stem from increases or decreases in wages, or from price changes affecting the purchasing power of income.

Substitution Effect

The change in consumption resulting from a change in the price of a product, leading consumers to substitute that product with another.

Income Effect

The change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.