Ronaldo's Foods Considered Building a Store in a New Location

question 56

Multiple Choice

Ronaldo's Foods considered building a store in a new location.The owners and their accountants decided that this was not the profitable thing to do.However,soon after they made this decision,both the interest rate and the cost of building the store changed.In which case do these changes both make it more likely that they will now build the store?

• A)Interest rates rise and the cost of building the store rises.
• B)Interest rates rise and the cost of building the store falls.
• C)Interest rates fall and the cost of building the store rises.
• D)Interest rates fall and the cost of building the store falls.

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Definitions:

Normal Good

A type of good for which demand increases as the income of consumers increases, showing a positive relationship between income and demand.

Sellers

Individuals or entities that offer goods or services for sale in the market.

Output

The total amount of goods or services produced by a company or industry over a specific period.

Buyers

Individuals or entities that purchase goods or services for personal use, resale, or production.