What Might Cause a Demand Function to Shift to the Right

question 114

Multiple Choice

What might cause a demand function to shift to the right?

• A)An increase in the price of a substitute.
• B)An increase in the product's own price.
• C)An increase in the price of a complement.
• D)A decrease in the price of a substitute.

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Definitions:

Common Size Analysis

A financial analysis technique that converts each line item of financial statements into a percentage of a base figure for easy comparison.

Base Amount

A reference amount from which adjustments are made, often used in calculations for taxes, benefits, or financial analysis.

Horizontal Analysis

A financial analysis technique that compares line items in the financial statements over a period of time to identify trends and changes.

Liquidity Ratio

A financial metric used to determine how easily a company can pay off its short-term liabilities with its liquid assets.