Which of the Following Transactions Is Represented by the Diagram

question 83

Multiple Choice

Which of the following transactions is represented by the diagram below?

• A)A junkyard holds weekly sales where it sells its entire inventory.
• B)A shoe store sells products to consumers.
• C)A stay-at-home mom creates furniture for doll houses. When one piece is finished, she sells it on Amazon.com.
• D)Netflix sells movies to consumers through its online downloading service.

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Definitions:

Even Dollar Increments

A pricing strategy where goods or services are priced in whole dollar amounts rather than including cents.

Complete Stranger

A person whom one does not know or with whom one is not familiar.

Expected Loss

The predicted amount of loss a business might suffer due to risks, calculated as the sum of all possible losses multiplied by their respective probabilities.

Weak Axiom

A principle used in consumer choice theory that stipulates if a consumer chooses bundle A over bundle B when both are affordable, then the consumer should not choose B over A when prices change, holding income constant.