When the Demand for Packaged Beer Fell by 8 Percent

question 164

Multiple Choice

When the demand for packaged beer fell by 8 percent in one year,the demand for aluminum beer cans and glass beer bottles also fell.The demand for beer containers is an example of which type of demand?

• A)fluctuating
• B)inelastic
• C)elastic
• D)derived

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Definitions:

Accounts Receivable Turnover

This ratio measures how efficiently a company collects revenue from its customers by dividing total sales by the average accounts receivable during a specific period.

Credit Sales

Sales transactions where the payment is deferred to a future date, essentially extending credit to the purchaser.

Credit Period

The amount of time allowed by a seller for a buyer to pay for goods or services received, typically expressed in days.

Operating Cycle

The time period between the acquisition of inventory and when cash is collected from receivables.