Typically,the Sales Volume Declines with an Increase of a Product

question 73

Multiple Choice

Typically,the sales volume declines with an increase of a product price.It has been observed,however,that for some luxury goods the sales volume may increase when the price increases.The following Excel output illustrates this rather unusual relationship. What can be said about the linear relationship between Price and Sales?

• A) The relationship is negatively moderate.
• B) There is no relationship.
• C) The relationship is positively strong.
• D) The relationship is negatively strong.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the normal operating cycle, whichever is longer.

Liquidity

A measure of how easily assets can be converted into cash without affecting their market price.

Accounts Receivable

Denotes the funds that customers owe a business for received goods or services that remain unpaid.

Notes Receivable

Claims held by a creditor that are supported by promissory notes, representing a right to receive payments from debtors.