When the Price of a Good or Service Changes

question 35

Multiple Choice

When the price of a good or service changes,

• A)the demand curve shifts in the opposite direction.
• B)the supply curve shifts in the opposite direction.
• C)the supply curve shifts in the same direction.
• D)there is a movement along a given supply curve.

---

Definitions:

Invested Capital

The cumulative sum of funds invested by stockholders and creditors into a firm for long-term purposes.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, usually expressed as a percentage of the principal.

Asset Turnover

A ratio that calculates how effectively a company utilizes its assets to produce sales income.

Sales Revenue

The total amount of money generated from sales of goods or services before any costs or expenses are subtracted.