An Increase in the Demand for a Product Will Cause

question 119

Multiple Choice

An increase in the demand for a product will cause

• A) both the demand for and prices of the resources used to produce the product to decline.
• B) both the demand for and prices of the resources used to produce the product to increase.
• C) the demand for the resources used to produce the product to increase and their prices to decline.
• D) the demand for the resources used to produce the product to decline and their prices to increase.

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Definitions:

Specific Date

Refers to a detailed and exact date on the calendar specified for an event or deadline.

Premium

The excess of the issue price of a stock over its par value or the excess of the issue price of bonds over their face amount.

Straight-Line Method

A depreciation method where the same amount of depreciation expense is allocated evenly over the useful life of an asset.

Interest Method

A technique used in accounting and finance to calculate the interest income or expense on bonds and loans over their life.