Which of the Following Would Most Likely Cause the Current

question 91

Multiple Choice

Which of the following would most likely cause the current demand for DVD players to fall?

• A) an increase in consumer income
• B) an increase in the price of DVD players
• C) an increase in the price of Blu-ray players, a substitute good
• D) the expectation that the price of DVD players will decrease sharply during the next six months

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Definitions:

Flexible Budget

A budget that adjusts or scales according to changes in the volume of activity, revenue, or other factors.

Sales Variance

The difference between actual sales and budgeted or forecasted sales, analyzed to understand revenue performance.

Flexible Budget Sales

Sales projections within a flexible budget that adjust based on actual levels of activity, rather than being fixed.

Fixed Budget Sales

A financial plan that outlines expected sales for a period based on set conditions, without adjustments for variations in actual performance.