A Shift of the Demand Curve Occurs If There Is

question 118

Multiple Choice

A shift of the demand curve occurs if there is:

• A) an increase in price.
• B) a change due to any factor except price.
• C) a decrease in price.
• D) a shift of the supply curve to the left.

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Definitions:

Cash Basis

An accounting method in which revenues and expenses are recorded only when cash is received or paid out.

Zero NPV

A situation where the net present value of a project or investment equals zero, indicating that the expected cash flows exactly discount the initial investment, resulting in no net gain or loss.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment, calculating the difference between the present value of cash inflows and outflows over a period.

Cash Basis

An accounting method where revenue and expenses are recorded only when cash is received or paid, respectively.