If the Demand for Digital Cameras Increases When Consumers' Incomes

question 7

Multiple Choice

If the demand for digital cameras increases when consumers' incomes rise,then digital cameras are

• A) a normal good.
• B) an inferior good.
• C) a substitute for camcorders.
• D) a complement to camcorders.
• E) made using advanced technology.

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Definitions:

Cash Flows

Cash flows refer to the inflows and outflows of cash and cash equivalents, representing the operating, investing, and financing activities of an entity during a specific period.

Operating Activities

Activities directly related to the business’s primary operations, such as sales, costs, and expenses, impacting the company's cash flow.

Investing Activities

Transactions and events that relate to the acquisition and disposal of long-term assets and other investments not included in cash equivalents, included in a company's cash flow statement.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, part of a company's cash flow statement.