In General, an Increase in Price Could Be Caused by Either

question 49

Multiple Choice

In general, an increase in price could be caused by either:

• A)​an increase in demand or a decrease in supply.
• B)​an increase in demand or an increase in supply.
• C)​a decrease in demand or an increase in supply.
• D)​a decrease in demand or a decrease in supply.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Inventory

The total amount of goods and materials held by a company intended for sale in the ordinary course of business.

Incremental Cash Flows

The additional cash inflows or outflows expected from a new project or investment, crucial for determining its net present value.

Capital Budgeting

The process of planning and managing a company's long-term investments in projects and assets, to maximize returns and shareholder value.