Jennifer Learns That the Price of Purchasing Songs from ITunes

question 39

Multiple Choice

Jennifer learns that the price of purchasing songs from iTunes will be going up 10 percent next week.She usually downloads three songs per week.What will happen to Jennifer's demand for songs this week?  

• A) It will NOT change because only quantity demanded changes when price changes. 
• B) It will decrease because the price will be higher next week. 
• C) It will increase because the price will be higher next week. 
• D) It will NOT change because only demand changes when the price increases.

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Definitions:

Inventory on August 1

The quantity and value of goods available for sale or use by a business at the start of August, often used for financial or supply chain analysis.

Perpetual LIFO

A method of inventory valuation where the last item of inventory purchased is assumed to be the first sold, continuously updated for each sale and purchase.

Cost of Goods Sold

Direct expenditures connected with fabricating the products a business sells, encompassing labor and material expenses.

Ending Inventory

The value of goods available for sale at the end of an accounting period, determined by a physical count or estimation.