Caroline Is Selling Soda and Lemonade at the Local University's

question 122

Multiple Choice

Caroline is selling soda and lemonade at the local university's baseball game. She prices the soda at $4.00 a bottle and lemonade at $7 each. These are generally much higher prices than people would normally pay. What is likely to happen to demand?

• A)Demand will plummet and Caroline will receive a significant loss.
• B)Caroline will be able to provide a greater supply of beverages than normal.
• C)Demand will be high because people tend to forget to bring their own beverages.
• D)People will be willing to pay to enhance their baseball game experience.
• E)Demand will not be high, but the high margins will provide a profit.

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Definitions:

Noncash Assets

Assets that cannot be easily converted to cash, such as property, equipment, and investments, often used for operational purposes.

Income Ratios

Financial metrics that compare different aspects of a company's income to other figures, typically used to assess financial performance and efficiency.

Liabilities

Financial obligations or debts that are owed by a business to another entity, which are settled over time through the transfer of economic benefits including money, goods, or services.

Capital Balances

The amount of money that the members or partners of a company have contributed and currently have in their accounts, reflecting the equity or stake in the firm.