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

question 35

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 income of cheese consumers, assuming that cheese is a normal good
• C)​an increase in the population
• D)​a technological advance that makes it cheaper to produce cheese

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Definitions:

Estimating Value of Inventory

The process of calculating the worth of unsold goods at the end of an accounting period using methods such as FIFO or LIFO.

Gross Profit Method

An inventory estimation technique that calculates the cost of goods sold by deducting sales revenue from the gross profit percentage.

Net Realizable Value

The estimated selling price of goods, minus the costs of their sale or disposal, used to assess the value of inventory or receivables.

Retail Inventory Method

An accounting method used to estimate the ending inventory and cost of goods sold of a retail company by using a cost-to-retail price ratio.