If a Study by the CMA Found That Brown Sugar

question 196

Multiple Choice

If a study by the CMA found that brown sugar caused weight gain while white sugar caused weight loss, what would we see?

• A) an increase in demand for brown sugar and a decrease in demand for white sugar
• B) no change in either demand because weight loss is not a nonprice determinant of demand
• C) an increase in demand for white sugar, and a decrease in the demand for brown sugar
• D) a decrease in the demand for white sugar, but no change in the demand for brown sugar

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Definitions:

Accounts Payable

Liabilities owed by a business to its creditors for goods and services purchased on credit, which are due within a short period.

Debit Memorandum

A document issued by a buyer to a seller indicating returned goods or a request for a price reduction, increasing the buyer's accounts payable.

Sales Returns and Allowances

A reduction in sales revenue for returned goods or provided allowances due to dissatisfaction or defects.

Merchandise Inventory

Goods that a merchandising company holds for the purpose of resale to customers in the ordinary course of business.