Which of the Following Best Represents the Effects of a Decrease

question 176

Multiple Choice

Which of the following best represents the effects of a decrease in the price of tomato juice, other things being equal?

• A) An upward movement along the demand curve for tomato juice.
• B) A downward movement along the demand curve for tomato juice.
• C) A rightward shift in the demand curve for tomato juice.
• D) A leftward shift in the demand curve for tomato juice.

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Definitions:

Arithmetic Average

A simple mean calculated by adding a set of numbers and dividing the sum by the count of those numbers, used to determine central tendencies.

Arithmetic Average Return

The return earned in an average year over a multi-year period.

Total Percentage Return

A financial metric that measures the total return of an investment, expressed as a percentage, including all dividends and capital gains.

Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits, which can be issued in various forms such as cash payments or further shares.