Which Is of the Following Statements Is Correct

question 171

Multiple Choice

Which is of the following statements is correct?

• A) If demand increases, then price will decrease
• B) If demand decreases, then price will decrease
• C) If price increases, then demand will decrease
• D) If price decreases, then demand will decrease

---

Definitions:

Section 179 Expense

A tax deduction allowing businesses to deduct the full purchase price of qualifying equipment or software purchased or financed during the tax year.

Guaranteed Payment

A fixed payment made to a partner by a partnership, independent of the partnership's profitability.

Cash Distribution

The payment of earnings, interest, or dividends in cash to shareholders or partners by a corporation, partnership, or other entity.

Liquidating Distribution

A payment made by a corporation to its shareholders during its dissolution, distributing its assets to the owners according to their ownership share.