If the Demand Curve for a Good Is the Line

question 31

Multiple Choice

If the demand curve for a good is the line defined by Q = 1,then a decrease in the price of that good will:

• A)decrease the quantity demanded.
• B)increase the quantity demanded.
• C)result in a quantity of zero being demanded.
• D)not change the quantity demanded.

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Definitions:

Reasonable Assurance

An acceptable level of certainty provided by internal controls intended to minimize errors and fraud in financial reporting.

Monthly Cash Expenses

The total outlay of cash by a business in a month, including all operating expenses, payments, and purchases.

Cash Balance

The amount of cash held by a business at any point in time, reflecting its immediate liquidity position.

Ratio

A ratio is a quantitative relationship between two numbers, showing how many times the first number contains the second or how the two numbers compare.