If the Number of Buyers in a Market Decreases, Then

question 69

Multiple Choice

If the number of buyers in a market decreases, then

• A)demand will increase.
• B)demand will decrease.
• C)supply will increase.
• D)supply will decrease.

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Definitions:

Contra-revenue Account

is an account that is deducted from gross revenues to arrive at net revenue, examples include sales returns, allowances, and discounts.

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a debit to the sales returns account and a credit to accounts receivable or cash.

Gross Sales

The gross sales income of a business before subtracting any returns, allowances, or discounts.

Credit Sales

Sales transactions where payment is not received at the time of purchase but is instead deferred to a later date.