An Increase in Demand Could Be Caused by

question 54

Multiple Choice

An increase in demand could be caused by

• A)​a decrease in price.
• B)​a decrease in income, assuming the good is inferior.
• C)​buyers expecting the price of the good to fall in the near future.
• D)​an increase in the price of a complement.

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Definitions:

Variable Costing

A costing method that includes only variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) in product costs and treats fixed manufacturing overhead as a period expense.

Generally Accepted Accounting Principles

A set of accounting standards, guidelines, and procedures used in the preparation of financial statements to ensure consistency and transparency.

Stockholders

Individuals or entities that own shares in a corporation, giving them various rights like voting on company matters and receiving dividends.

Cost-Volume-Profit Graph

A visual representation that shows how changes in cost, volume, and profit affect a business.