An Increase in the Demand for a Product Will Cause

question 210

Multiple Choice

An increase in the demand for a product will cause the

• A) demand for and prices of the resources used to produce the product to increase.
• B) demand for and prices of the resources used to produce the product to decrease.
• C) demand for and prices of the resources used to produce the product to remain unchanged.
• D) price of the product to decrease.

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Definitions:

Loss Account

An account that records the expenses that exceed revenues, indicating a negative financial performance over a period.

Debt Investments

Investments in government and corporation bonds.

Net Proceeds

The amount of money received from a sale after subtracting all related expenses and costs.

Fair Value

Amount for which a security could be sold in a normal market.