If Tofu Is a Normal Good, an Increase in Income

question 231

Multiple Choice

If tofu is a normal good, an increase in income will:

• A) cause tofu to sell at a lower price.
• B) increase the production of tofu.
• C) shift the demand curve for tofu to the left.
• D) shift the demand curve for tofu to the right.
• E) rotate the supply curve in a clockwise manner.

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Definitions:

Non-posting Account

A non-posting account is an account used in accounting software for transactions that affect reports or balances without affecting the general ledger.

Accounting System

A systematic process of recording, measuring, and communicating financial information about economic entities.

Chart of Accounts

A systematic listing of all ledger account titles and numbers used in a company's accounting system.

Income Account

An account used in accounting to track revenue or income generated by a business or individual over a period of time.