Author Question: Identify the reasons why the quantity demanded of a product increases as the price of that product ... (Read 114 times)

theo · **on:** Jul 1, 2018

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

Question 2

Managers of profit centers earn more when their divisions
a. increase their sales and increase their costs
b. decrease their sales and increase their costs
c. decrease the costs of the components for which they are responsible
d. increase the costs of the components for which they are responsible