If a Decrease in Income Increases the Demand for a Good,then

question 29

Multiple Choice

If a decrease in income increases the demand for a good,then the good is a(n)

• A)substitute good.
• B)complementary good.
• C)normal good.
• D)inferior good.

---

Definitions:

Average Collection Period

A measure of how long it takes a firm to convert a credit sale (internal store credit, not credit card sales) into a usable form (cash).

Quick Ratio

A financial metric that measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventories.

Goods Sold

Goods sold refers to the products that a company has provided to customers in exchange for payment; it is often used in the context of calculating revenues and inventory turnover.

Current Ratio

This is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.