Other Things Equal, What Happens When the Price of a Good

question 195

Multiple Choice

Other things equal, what happens when the price of a good rises?

• A) The quantity demanded of the good increases.
• B) The supply increases.
• C) The quantity supplied of the good rises.
• D) The demand curve shifts to the left.

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Definitions:

Aging Schedule

Breaks down accounts receivable according to how long they have been outstanding. This gives the firm a more complete picture of the structure of accounts receivable than that provided by days’ sales outstanding.

DSO

The average duration a company needs to collect payment post-sale is known as Days Sales Outstanding.

Seasonal Sales

Variations in sales volume that occur at specific times of the year due to factors like holidays or seasons.

Synchronization of Cash Flows

The strategic timing of income and expense cash flows to ensure liquidity and optimize financial performance.