When the Relative Price of a Good Increases, How Will

question 81

Multiple Choice

When the relative price of a good increases, how will consumers respond?

• A) by buying more of it and its substitutes
• B) by buying less of it and its substitutes
• C) by buying less of it and more of its substitutes
• D) by buying more of it and less of its substitutes

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Definitions:

NSF Checks

Non-sufficient funds checks, a term used when a check cannot be honored because the drawer's account lacks enough money.

Outstanding Checks

Checks that are recorded in the financial records but haven't been cashed or processed by the bank yet.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditures to the appropriate period.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those presented on a bank statement to ensure they are consistent and accurate.