If the Price of Gasoline Increases Significantly, Then We'd Expect

question 74

Multiple Choice

If the price of gasoline increases significantly, then we'd expect the demand curve for large trucks and SUVs to:

• A) Shift to the right
• B) Shift to the left
• C) Become upward-sloping
• D) Not shift, but there will be a movement along that demand curve

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Definitions:

Capital Expenditures Budget

A plan that details a company's projected spending on long-term assets, such as property, plant, and equipment, which are expected to provide benefits over multiple years.

Merchandise Purchases Budget

A financial plan detailing the amount of goods a company needs to purchase during a period to meet expected sales demands and maintain inventory levels.

Master Budget

An aggregated budget that represents a company's overall plan of action for a specified period, integrating individual budgets for income, spending, and capital expenditures.

Master Budget

A comprehensive financial planning document that consolidates all of an organization's individual budgets.