Four Points on a Demand Schedule Are Given: $12, 2

question 265

Multiple Choice

Four points on a demand schedule are given: $12, 2 units; $10, 3 unit; $15, 5 units; and $2, 4 units. Which combination is inconsistent with the law of demand?

• A) $12 and 2 units
• B) $10 and 3 unit
• C) $15 and 5 units
• D) $2 and 4 units

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Definitions:

FIFO

The first-in, first-out accounting method of inventory valuation.

LIFO

The last-in, first-out accounting method of valuing inventories.

Economic Earnings

The real flow of cash that a firm could pay out without impairing its productive capacity.

Liquidity Ratio

A financial metric used to determine a company's ability to pay off its short-term debts with its current assets.