Which of the Following Would Cause a Normal Good's Demand

question 31

Multiple Choice

Which of the following would cause a normal good's demand curve to shift to the left?

• A) Income decreases.
• B) Income increases.
• C) The price increases.
• D) The price decreases.
• E) The input prices increase.

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Definitions:

Cost of Inventory

The total cost incurred to acquire inventory, including purchase price, taxes, and transportation.

Condensed Income Statement

A simplified financial statement summarizing a company's revenues, expenses, and net income, without detailed line items.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses from total revenue.

Gross Profit

The difference between revenue and the cost of goods sold before deducting any selling, administrative, or other expenses.