Which of the Following Would Most Likely Increase the Demand

question 388

Multiple Choice

Which of the following would most likely increase the demand for peanut butter?

• A) a decrease in the price of jelly, a good that is often used with peanut butter
• B) the discovery that excessive consumption of peanut butter is harmful to one's health
• C) crop failures that raise the price of peanuts
• D) the invention of a new product that consumers think is a good substitute for peanut butter

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Definitions:

IASB

The International Accounting Standards Board, responsible for developing and enforcing the International Financial Reporting Standards (IFRS).

Fair Value Measurement

An accounting approach that provides an estimate of the price at which an asset could be exchanged or a liability settled, based on current market conditions.

Financial Instruments

Contracts that give rise to both a financial asset of one entity and a financial liability or equity instrument of another entity, such as stocks, bonds, or derivatives.

FASB

The Financial Accounting Standards Board, which is responsible for establishing and improving financial accounting and reporting standards in the United States.