In Drawing a Demand Curve, the Labels for the Axes

question 198

Multiple Choice

In drawing a demand curve, the labels for the axes are

• A)price (on the vertical axis)and quantity (on the horizontal axis).
• B)price (on the vertical axis)and quantity per unit of time (on the horizontal axis).
• C)price (on the horizontal axis)and quantity (on the vertical axis).
• D)price (on the horizontal axis)and quantity per unit of time (on the vertical axis).

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Definitions:

Credit Extension

The act of a lender increasing the amount of credit available to a borrower or the period over which repayment can be spread.

Receivables Financing

A type of financing in which a company uses its accounts receivable as collateral to secure a loan.

Terms of Sale

The conditions under which a seller will complete a sale, typically covering payment terms, delivery times, and warranties.

Accounts Receivable

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