The Law of Demand Implies That, Other Things Remaining the Same

question 130

Multiple Choice

The law of demand implies that, other things remaining the same,

• A) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded decreases.
• B) as the demand for cheeseburgers increases, the price of a cheeseburger falls.
• C) as more people demand cheeseburgers, the quantity demanded increases.
• D) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded increases.
• E) as income increases, the quantity of cheeseburgers demanded increases.

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Definitions:

Balance Sheet

A document presenting a firm's assets, liabilities, and owner's equity at a certain date.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered or used but not yet paid for.

Cash Effect

The impact of transactions on the cash position of a company, including inflows and outflows.

Insurance Expense

The cost recognized in accounting for premiums paid on insurance policies covering various risks to a business.