Which of the Following Is True

question 9

Multiple Choice

Which of the following is true?

• A) Buyers always prefer lower prices to higher prices.
• B) Buyers never prefer lower prices to higher prices.
• C) Buyers rarely prefer lower prices to higher prices.
• D) Buyers prefer lower prices to higher prices,ceteris paribus.

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Definitions:

Additional Assets

Additional resources or properties acquired by a firm or individual which can be utilized for generating revenue or held as an investment.

Incremental Cash Flow

The additional cash flow generated by a company from undertaking a new project or making a business decision, used to analyze the profitability of that decision.

Taxes

Taxes are compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.