In Which of the Following Statements Are the Terms "Demand

question 236

Multiple Choice

In which of the following statements are the terms "demand" and "quantity demanded" used correctly?

• A) When the price of ice cream rose, the demand for both ice cream and ice cream toppings fell.
• B) When the price of ice cream rose, the quantity demanded of ice cream fell, and the demand for ice cream toppings fell.
• C) When the price of ice cream rose, the demand for ice cream fell, and the quantity demanded of ice cream toppings fell.
• D) None of these choices are correct.

---

Definitions:

Required Rate

The minimum rate of return that an investment or project must offer to be considered viable or attractive.

Operating Assets

Assets used in the daily operations of a business to generate revenue, such as plant, equipment, inventory, and receivables.

Residual Income

The income that an entity generates after accounting for the cost of capital, showing what is effectively left over for shareholders.

Centralized Organizations

Organizations where decision-making authority is concentrated at the top levels of management, with lower levels primarily responsible for implementing decisions.