If Price Rises from $2 to $3 and the Quantity

question 3

Multiple Choice

If price rises from $2 to $3 and the quantity demanded falls from 100 to 99,demand would be

• A)0.03
• B)0.67
• C)1.23
• D)5.81

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Definitions:

Gross Profit

The distinction between sales income and the expense of goods sold prior to subtracting overhead costs, wages, taxes, and interest charges.

Periodic

Relating to or occurring at regular intervals; in accounting, it may refer to methods or adjustments made at regular intervals, such as the Periodic Inventory Method.

Inventory Method

An accounting approach used to value inventory, including procedures like First-In, First-Out (FIFO) or Last-In, First-Out (LIFO).

Perpetual

An inventory system where transactions are recorded in real-time, immediately affecting the inventory account, providing an ongoing record of inventory on hand.