When the Price of a Good Falls,there Will Be

question 163

Multiple Choice

When the price of a good falls,there will be

• A)no change in quantity demanded.
• B)an outward shift in the demand for the good.
• C)a movement along the good's demand curve.
• D)both an outward shift in the demand for the good and a movement along the good's demand curve.

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Definitions:

Direct Labor Hours

The total time workers spend producing a product or providing a service, directly tied to the production process.

Contribution Margin Ratio

A financial metric that shows what percentage of sales revenue is available to cover fixed costs and generate profit after variable costs have been paid.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced by a business.

Sales Decrease

A drop in the volume or amount of products or services sold by a company within a specific period.