Which of the Following Is Consistent with the Law of Demand

question 296

Multiple Choice

Which of the following is consistent with the law of demand?

• A) An increase in the price of a DVD causes an increase in the quantity of DVDs demanded.
• B) An increase in the price of a soda causes a decrease in the quantity of soda demanded.
• C) A decrease in the price of a gallon of milk causes a decrease in the quantity of milk demanded.
• D) A decrease in the price of juice causes no change in the quantity of juice demanded.

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Definitions:

Statement Of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financial activities.

Direct Method

A way of reporting cash flows from operating activities in a cash flow statement that lists specific types of cash receipts and payments.

Cash Inflow

Money coming into a business or project from various sources including sales, investment income, or financing.

Cash Outflow

Money that flows out of a business or a financial account, typically representing expenses or investments.