Which of the Following Will NOT Increase the Demand for Iced

question 101

Multiple Choice

Which of the following will NOT increase the demand for iced tea?

• A) an increase in advertising that makes drinking iced tea more appealing
• B) a decrease in the price of iced tea
• C) an increase in the income of consumers (assume that iced tea is a normal good)
• D) an increase in the price of iced coffee, a substitute product

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Definitions:

Direct Method

A way of preparing a cash flow statement where actual cash flow information from the company’s operations is used, directly showing cash receipts and cash disbursements.

Machine Hours

A measure of production output based on the amount of time machinery is operated.

Number Of Employees

The total count of individuals employed by a company or organization, either full-time or part-time.

Step-down Method

A method used in cost accounting to allocate service department costs to producing departments, considering inter-departmental services.