Some Producers Are Chatting

question 152

Multiple Choice

Some producers are chatting.Which one of the following quotations refers to a movement along the supply curve?

• A)"Wage increases have forced us to raise our prices."
• B)"We anticipate a big increase in demand.Our product price should rise, so we are planning for an increase in output."
• C)"New competitors in the industry are causing prices to fall."
• D)"Raw material prices have sky- rocketed; we will have to pass the cost on to our customers."
• E)"Our new, sophisticated equipment will enable us to undercut our competitors."

---

Definitions:

Note Receivable

A financial asset representing a written promise to receive a specific amount of money at a future date or dates.

Journal Form

The format or layout used for recording transactions in the accounting journal.

Dishonored

Used to describe a check or promissory note that has been presented for payment but is refused by the bank due to insufficient funds or other reasons.

Settlement

The process of concluding a transaction or an agreement by completing all procedural and payment aspects.