If an Increase in the Supply of Good a Increases

question 55

Multiple Choice

If an increase in the supply of good A increases the demand for good B,then

• A)the cross elasticity of supply for good B with respect to the price of good A is positive.
• B)the elasticity of supply for good A is greater than 1.
• C)A and B are complements.
• D)A and B are substitutes.
• E)the demand for A is price elastic.

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Definitions:

Closing Entry

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thus preparing the books for the next period.

Reversing Entry

An accounting entry made at the beginning of a period to reverse the effects of certain adjustments made in the previous period.

Salary Expense

The cost incurred by a business to pay its employees.

Financial Statement

An organized log of economic actions and the financial situation of a firm, an individual, or any other unit.