Which of the Following Must Be True If Good X

question 131

Multiple Choice

Which of the following must be true if good X is a normal good and income increases?

• A) The demand for X will increase, and thus the price and quantity sold and bought will decrease.
• B) The demand for X will decrease, and thus the price and quantity sold and bought will decrease.
• C) The demand for X will increase, and thus the price and quantity sold and bought will increase.
• D) The demand for X will decrease, and thus the price and quantity sold and bought will increase.

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Definitions:

Investing Activity

Refers to buying and selling long-term assets and other investments, a key part of a company's cash flow statement.

Statement of Cash Flows

An overview presenting the collective cash revenues from a company’s operational efforts and external funding sources, together with all cash disbursements for corporate actions and investments, during a designated period.

Future Cash Payment

Future cash payment refers to the amount of money that is obligated to be paid by an entity in the future for transactions occurring in the present or past.

Unearned Revenues

Money received by a company for a service or product that has yet to be delivered or provided.