The Product Is a Normal Product

question 118

Multiple Choice

The product is a normal product.

-What is the effect of a decrease in the supply of a product?

• A)It will cause an increase in both the price and in the quantity traded.
• B)It will cause an increase in the price but a decrease in the quantity traded.
• C)It will cause a decrease in both the price and in the quantity traded.
• D)It will cause a decrease in the price but an increase in the quantity traded.

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Definitions:

Cash Sales

Cash sales refer to transactions where payment is made in cash at the time of sale, without deferral.

Petty Cash Account

A small amount of cash kept on hand for minor or incidental expenses, managed through a specified fund.

Purpose

The reason for which something is done or created or for which something exists.

General Journal Entry

A general journal entry is a record of financial transactions that includes details such as date, accounts impacted, amounts, and a brief description of the transaction.