If the Demand for Digital Cameras Increases When Consumers' Incomes

question 97

Multiple Choice

If the demand for digital cameras increases when consumers' incomes rise, then digital cameras are

• A) an inferior good.
• B) a normal good.
• C) made using advanced technology.
• D) a substitute for camcorders.
• E) a complement to camcorders.

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Definitions:

Credit Sale

A transaction in which goods or services are provided to a customer with the understanding that payment will be made at a later date.

Allowance Method

An accounting technique used to account for future losses on receivables that are considered likely to become uncollectible.

Net Accounts Receivable

The amount of money owed to a company by its customers minus the provision for bad debts.