An Increase in Demand

question 13

Multiple Choice

An increase in demand:

• A) results in a leftward shift of the demand curve.
• B) could be caused by a decrease in the price of the good.
• C) could be caused by an increase in the price of a substitute good.
• D) is shown as movement down along a demand curve.

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Definitions:

Merchandise Inventory

Goods that a company owns and intends to sell, comprising a significant part of a retailer’s current assets.

Cost Of Goods Manufactured

The total cost incurred by a company to manufacture its products, including labor, material, and overhead costs, during a specific period.

General & Administrative

Expenses related to the general operation of a company, including salaries of executive personnel, rent, utilities, and office supplies, not directly tied to production.

Transportation Costs

Expenses incurred in the process of moving goods from one location to another.