Which of the Following Would NOT Cause an Increase in the Demand

question 105

Multiple Choice

Which of the following would NOT cause an increase in the demand for cheese?

• A) a decrease in the price of crackers, which are consumed with cheese
• B) an increase in the population of cheese lovers
• C) an increase in the income of cheese consumers, assuming that cheese is a normal good
• D) a technological advance that makes it cheaper to produce cheese

---

Definitions:

Fixed Monthly Cost

Regular expenses that do not fluctuate with production volume or sales, such as rent, salaries, and insurance, billed on a monthly basis.

Contribution Margin

Contribution margin is the difference between sales revenue and variable costs of a product or service, highlighting how much revenue contributes towards covering fixed costs and generating profit.

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that remains constant regardless of the level of production, such as salaries of supervisors and rent of the factory.

Outside Supplier

An external company or individual that provides goods or services to another company.