For There to Be Demand for a Good, People Must

question 164

Multiple Choice

For there to be demand for a good, people must

• A)want the good more than they want other goods.
• B)know the prices of all other goods.
• C)feel there are few substitutes for the good.
• D)need the good.
• E)be willing and able to buy the good at the market price.

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Definitions:

Total Sales

The aggregate revenue generated from all goods and services sold by a company within a particular period, serving as a key indicator of the company's financial health and market demand.

Gross Profit

The financial gain made after subtracting the cost of goods sold from total sales revenue.

Ending Inventory

The estimation of goods on hand for sale at the termination of an accounting period, figured by the formula: starting inventory plus acquisitions minus the cost of goods sold.

Inventory Turnover Ratio

A measure of how rapidly inventory is sold or used in a given period, calculated by dividing cost of goods sold by average inventory.