Which of the Following Statements Is FALSE

question 85

Multiple Choice

Which of the following statements is FALSE?

• A) If there is an increase in the demand for a product, consumers want to buy more of the product at each and every possible price.
• B) A decrease in demand shifts the demand curve leftward toward the origin, while a decrease in quantity demanded involves a movement upward along a particular demand curve.
• C) If the price of a good rises, quantity demanded of the good decreases and the demand curve shifts toward the origin as long as supply is static.
• D) A change in the demand for a product is caused by factors other than changes in the product's price.

---

Definitions:

Cost-Volume-Profit Analysis

A management accounting method used to analyze how changes in costs and sales volume affect a company's profit.

Expected Income

This is the amount of revenue or profit an individual or business anticipates earning over a specific period, often used for budgeting and planning purposes.

Fixed Cost

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance premiums, remaining constant regardless of business activity levels.

Production Level

The quantity of items manufactured or produced in a given period, impacting costs, inventory, and capacity planning.