The Law of Demand States

question 101

Multiple Choice

The law of demand states:

• A)that price and quantity demanded are inversely related.
• B)that price and quantity demanded are inversely related, holding all other factors that influence demand fixed.
• C)that demand for a good comes from the desire of buyers to directly consume the good itself.
• D)an increase in demand results in an increase in price.

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Definitions:

Cost Per Unit

A measure of the cost incurred to produce, acquire, or create one unit of a product or service.

Stock Number

A unique identifier assigned to a particular stock of goods or securities for identification and inventory management.

Internal Control

Measures and tactics adopted by an organization to safeguard the reliability of its financial and accounting data, foster responsibility, and avert deceit.

Materials Requisition Slip

A document used internally in a company to request materials or goods from the inventory or warehouse, specifying quantities and details needed for production.