Which of the Following Statements Is CORRECT

question 505

Multiple Choice

Which of the following statements is CORRECT?

• A) When demand decreases, both the price and the quantity increase.
• B) When demand increases, both the price and the quantity decrease.
• C) When supply increases, the quantity increases and the price falls.
• D) When supply decreases, both the price and the quantity decrease.

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Definitions:

FIFO

First-In, First-Out, an accounting method where the oldest inventory items are recorded as sold first.

ROE

ROE, or Return on Equity, measures a corporation’s profitability by revealing how much profit it generates with the money shareholders have invested.

Investments

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Compound Leverage Factor

A metric used to evaluate the effectiveness of using borrowed funds or financial derivatives to increase investment returns.