A Normal Good Is Defined as a Good for Which

question 29

Multiple Choice

A normal good is defined as a good for which demand increases

• A)as the income of consumers increases.
• B)as its own price decreases.
• C)as the price of close substitutes decreases.
• D)as the total number of consumers increases.
• E)as a reflection of changing consumer tastes.

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Definitions:

Margin Of Safety

The difference between actual or projected sales and the break-even point, indicating the buffer against losses.

Break-Even Sales

The amount of revenue that is exactly sufficient to cover both fixed and variable costs, resulting in neither profit nor loss.

Break-Even

The point at which total revenues equal total costs, resulting in no net loss or gain.

Total Dollar Sales

The aggregate revenue a company generates from the sale of its goods or services before any expenses are subtracted.