A Normal Good Is a Good Whose Quantity Demanded

question 118

Multiple Choice

A normal good is a good whose quantity demanded

• A)rises when its price falls.
• B)falls when the price of a related good falls.
• C)falls when the consumer's total utility rises.
• D)rises when the consumer's real income increases.

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Definitions:

Business Entity Assumption

A principle in accounting that treats a business as separate from its owners or other businesses, allowing for independent financial accounting and reporting.

Accounting Equation

The accounting equation, Assets = Liabilities + Equity, is the fundamental formula in accounting, ensuring that a company's balance sheet is balanced.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the owners' share.

Assets

Resources owned or controlled by a business or an individual that are expected to produce positive economic value.