Which of the Following Increases the Demand for a Good

question 20

Multiple Choice

Which of the following increases the demand for a good?

• A) a rise in the price of a complement
• B) the expectation that future income will be higher
• C) an increase in income, assuming the good is an inferior good
• D) a decrease in the number of buyers
• E) a fall in the price of a substitute

Estimate bad debt expense and understand its impact on financial statements.

Calculate interest and maturity values for promissory notes.

Understand the impact of receivables management on business liquidity and financial health.

Apply aging of receivables method to estimate uncollectible accounts.

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Definitions:

Inferior Goods

Goods for which demand decreases as consumer income rises, in contrast to normal goods, where demand increases with higher incomes.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting the sensitivity of consumers to price changes.

Quantity Supplied

The total amount of a specific good or service that is available to consumers at a given price point and time.

Ice Cream

A sweet, frozen dessert made from a combination of dairy products, sweeteners, and flavorings.