Soft Drinks Are a Normal Good

question 247

Essay

Soft drinks are a normal good. Draw a graph showing the effect of an increase in income on the demand for soft drinks.

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Definitions:

LIFO

Last In, First Out, an inventory valuation method where the most recently produced items are recorded as sold first.

FIFO

An accounting method where the first items placed in inventory are the first sold or used.

Inventories

Quantities of goods in stock that are held by a business for the purpose of sale or production.