Which of the Following Statements Is TRUE

question 279

Multiple Choice

Which of the following statements is TRUE?

• A) An increase in the price of gasoline will decrease the demand for gasoline.
• B) An increase in the price of gasoline will increase the quantity demanded of gasoline.
• C) An increase in the price of gasoline will increase the supply of gasoline.
• D) An increase in the price of gasoline will increase the quantity supplied of gasoline.

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Definitions:

Market Inventory

The total quantity of goods available for sale in the market.

Overstated Inventory

An inventory valuation that is higher than the actual inventory level, which can misrepresent financial health.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting overheads, taxes, and interest.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, showing revenue, expenses, and profit or loss.