Which of the Following Would Increase Demand for a Given

question 167

Multiple Choice

Which of the following would increase demand for a given good?

• A) high unemployment,if it is a normal good
• B) a reduction in price,if it is a normal good
• C) the expectation that the price will increase in the near future
• D) an increase in the price of a complementary good

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Definitions:

Specific Invoice Method

Valuing of inventory where each item is identified with a specific invoice.

Cost of Goods Sold

Financial obligations directly related to producing a company’s saleable goods, encompassing material and labor costs.

Periodic Inventory System

A method of inventory valuation where updates to inventory levels and cost of goods sold are made periodically at the end of an accounting period, rather than after each sale or purchase.

LIFO Method

An inventory valuation method that assumes the last items placed in inventory are the first sold during an accounting year.