What Does the Demand Curve for a Prestige Product Look

question 143

Multiple Choice

What does the demand curve for a prestige product look like?

• A) It is a straight line where the quantity sold continues to increase as the price of each product increases.
• B) It is a curve where the highest and the lowest prices yield the greatest quantity sold and mid-range prices produce the fewest sales.
• C) It forms a curve where the greatest quantity sold comes at a medium price, and the quantities fall as the price increases or decreases.
• D) It forms a straight vertical line because of the prestige of the product, and quantity sold will remain stable regardless of the price.
• E) It slopes from left to right at a very mild slope; that is, as quantity increases, price decreases slowly.

---

Definitions:

Liabilities

Liabilities are financial obligations or debts owed by a business to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Reversing Entry

An accounting entry that is made at the beginning of an accounting period to reverse or cancel out a previously made adjusting entry.

Salaries Expense

The total amount of salary payments owed to employees for work performed during a specific period.

Salaries Payable

An account that records amounts owed to employees for work performed but not yet paid, a liability on the balance sheet.