In 2008 There Were 200,000 Gas Grills Demanded at a Price

question 187

Multiple Choice

In 2008 there were 200,000 gas grills demanded at a price of $500. In 2009 there were more than 200,000 gas grills demanded at the same price. This increase could be the result any of the following EXCEPT

• A) an increase in the supply of gas grills.
• B) an increase in population.
• C) a fall in the price of natural gas, a complement for a gas grill.
• D) an increase in income if gas grills are a normal good.

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Definitions:

Merchandising Company

A business that purchases finished goods for resale, making a profit on the merchandise sold.

Income Statement

A financial statement showing the revenue, expenses, and profits or losses of a business over a particular period.

Freight-In

Freight-In costs are the shipping charges for receiving goods from suppliers, considered part of the inventory cost and included in the cost of goods sold when the inventory is sold.

Purchases Account

A ledger account used to record the amounts spent on acquiring inventory for resale or raw materials for production, excluding any direct labor or overhead costs.