Which of the Following Would Tend to Increase the Price

question 104

Multiple Choice

Which of the following would tend to increase the price of lumber?

• A) a technological advance that lowers the cost of cutting timber
• B) an increase in the demand for newly constructed homes
• C) a decrease in the demand for wooden rocking chairs
• D) a decrease in the tax imposed on firms who produce lumber

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Definitions:

Sales Discount

A reduction in the sale price offered by a seller to a buyer, typically to prompt early payment or reward customer loyalty.

Freight Costs

Freight costs refers to the charges involved in transporting goods by land, sea, or air. This includes the expenses associated with moving merchandise from the point of origin to its destination.

F.O.B. Destination

A shipping term indicating that the seller bears the freight charges and retains ownership of the goods being shipped until they reach the buyer's location.

F.O.B. Shipping Point

Purchaser pays or is responsible for the shipping costs from seller’s shipping point to purchaser’s location.