The law of demand states that: a. consumers will exhaust their incomes as they purchase goods and services at given absolute prices.
b. the quantity demanded of a good is higher at a lower relative price than at a higher relative price.
c. there is a direct positive relationship between relative price and quantity demanded.
d. if the price of a good increases both relatively and absolutely, there will be no change in quantity demanded.

Which of the following is an element of inventory holding costs? a. material handling costs b. investment costs c. housing costs d. pilferage, scrap, and obsolescence e. all of the above are elements of inventory holding costs.

Adisadvantage of corporations is that shareholders have to pay on profits.

Why is the type of product sold in an industry an important characteristic? a firm that can differentiate its product from that of rivals may be able to charge a higher price for a superior product. a firm that sells intangible goods is usually considered a monopoly. service industries cannot differentiate their products, which makes it easy for new firms to enter the industry. expensive products are usually sold by perfectly competitive firms.