Which of These Can Possibly Account for a Decrease in the Demand

question 54

Multiple Choice

Which of these can possibly account for a decrease in the demand for peanut butter,a normal good?

• A)An increase in the supply of peanut butter
• B)An increase in the price of peanut butter
• C)A substantial increase in the price of bread
• D)A drought in Georgia that destroyed 30 percent of the peanut crop
• E)An increase in consumer income

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Definitions:

Cash Receipts

The total amount of money, including cash, checks, and credit card payments, received by a business during a given period.

Credit Sales

Transactions where goods or services are provided to a customer with the agreement that payment will be made at a future date.

Selling and Administrative

Expenses associated with the company's efforts to sell its products and manage the overall organization, excluding production costs.

Variable Cost

A cost that changes in proportion to the level of output or activity in a company.