Identify the Reasons Why the Quantity Demanded of a Product

question 1

Multiple Choice

Identify the reasons why the quantity demanded of a product increases as the price of that product decreases.

• A) as the price declines,the real income of the consumer increases
• B) as the price of product A declines,it makes it more attractive than product B
• C) as the price declines,the consumer will always demand more on each successive price reduction
• D) a and b
• E) a and c

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Definitions:

Standard Production Time

The amount of time that should reasonably be expected to manufacture a product under normal conditions.

Fringe Benefits

Additional benefits supplementing an employee's salary, such as health insurance, paid vacation, or a company car.

Freight Costs

Expenses incurred by a company to transport goods from one place to another.

Purchase Price

The amount of money paid to acquire a good, service, or asset.