Which of the Following Would Tend to Decrease the Demand

question 182

Multiple Choice

Which of the following would tend to decrease the demand for coal miners?

• A) an increase in the wages of coal miners
• B) an increase in the price of oil
• C) a decrease in the demand for coal
• D) an increase in the supply of coal miners

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Definitions:

Capital Structure

The composition of a company's funding through debt and equity, and how it impacts its risk and value.

Fixed Cost

Business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

Financial Leverage

The use of borrowed funds with a fixed cost in an attempt to increase the returns to shareholders by magnifying investment gains or losses.

EBIT

Earnings Before Interest and Taxes, a financial metric that calculates a firm’s profit excluding interest and income tax expenses.