Which of the Following Is True If the Price of Coffee

question 112

Multiple Choice

Which of the following is true if the price of coffee increases?

• A) The demand for tea, a substitute good, will decrease.
• B) The demand for coffee will increase.
• C) The demand for coffee and tea will decrease.
• D) Both the demand for coffee and tea will increase.
• E) The demand for tea, a substitute good, will increase.

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Definitions:

Enter Bill

The process of recording an invoice received from a vendor or supplier into the accounting system.

Merchandise Company

A business entity primarily engaged in the retail or wholesale buying and selling of goods for profit.

Opening Adjusting Entry

An entry made in the books at the beginning of an accounting period to adjust the balances of accounts from the previous period, ensuring accurate and up-to-date financial records.

Opening Balance Equity

An account used in accounting to balance the books when starting a new company file or reconciling accounts.