When the Price of a Good Increases, Demand for the Good

question 176

Multiple Choice

When the price of a good increases, demand for the good will:

• A) increase.
• B) decrease.
• C) be unaffected.
• D) depend on the corresponding change in supply.

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Definitions:

Credits

Accounting entries that decrease assets or increase liabilities and equity on the balance sheet.

Debits

In accounting, debits are entries on the left side of an account ledger, indicating increases in asset or expense accounts, or decreases in liability, equity, or revenue accounts.

Credit

An accounting entry that represents an increase in liabilities or equity or a decrease in assets, opposite of a debit.

Offset Side

The side of a transaction that counterbalances the primary entry, ensuring the accounting equation remains balanced.