An Increase in the Price of a Product (If Demand

question 1

Multiple Choice

An increase in the price of a product (if demand is downward sloping) will lead to:

• A) An increase in quantity demanded
• B) An outward shift in demand
• C) An outward shift in supply
• D) A decrease in quantity demanded

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Definitions:

Cosmetics Division

A specialized department or sector within a company focused on the production and sale of beauty, skincare, and personal care products.

Return on Investment

A measure of the profitability or efficiency of an investment, calculated as the net profit from the investment divided by its cost.

Residual Income

Operating income that exceeds a set minimum return on operating assets, used as a measure of the profitability and performance of a business unit.

Division

A segment within an organization that focuses on specific products, services, territories, or customers, usually with its own set of management and financial goals.