An Increase in Demand Could Be Caused by

question 54

Multiple Choice

An increase in demand could be caused by

• A)​a decrease in price.
• B)​a decrease in income, assuming the good is inferior.
• C)​buyers expecting the price of the good to fall in the near future.
• D)​an increase in the price of a complement.

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Definitions:

Period Cost

Costs that are expensed in the period in which they are incurred and are not directly tied to production activity, such as selling, administrative, and general expenses.

Marketing

The process and techniques used by organizations to promote and sell their products or services, including market research and advertising.

Administrative Expense

Expenses related to the general operation of a business, including executive salaries, marketing, and other non-production costs.

Period Cost

Operating expenses not directly associated with the production of goods, typically including selling, administrative, and other overhead costs.