Use the Following to Answer Question

question 132

Multiple Choice

Use the following to answer question
Figure: Interpreting Demand Curves
-(Figure: Interpreting Demand Curves) In the demand curve shown,an increase in price from $1 to $2 will:

• A) cause quantity demanded to rise from 20 to 30 units.
• B) cause quantity demanded to fall from 30 to 20 units.
• C) have no impact on sales.
• D) make buyers mad.

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Definitions:

Financing Activities

Transactions that involve raising funds for the company through borrowing or issuing equity.

Productive Capacity

The maximum output a system can produce over a specific period under normal conditions.

Income Taxes Payable

The amount of income taxes a company owes to the government that has not yet been paid.

Operating Activities

Transactions and events that affect the net income of a company, involving its primary operations.