Figure 9-18

question 243

Multiple Choice

Figure 9-18.On the diagram below,Q represents the quantity of peaches and P represents the price of peaches.The domestic country is Isoland.
-Refer to Figure 9-18.Suppose Isoland changes from a no-trade policy to a policy that allows international trade.If the world price of peaches is $3,then the policy change results in a

• A)$15.00 decrease in producer surplus.
• B)$45.00 increase in consumer surplus.
• C)$20.00 increase in total surplus.
• D)$12.50 increase in total surplus.

Distinguish between perpetual and periodic inventory systems and their impact on accounting records.

Recognize the recording processes for sales on account, including returns and discounts.

Grasp the treatment of sales involving bank credit cards.

Understand the reporting and impact of freight terms on accounting entries.

---

Definitions:

Afterimages

Visual illusions in which retinal impressions persist after the removal of a stimulus, often in complementary colors.

Trichromatic Theory

A theory in vision science that proposes the human eye has three types of receptors with differing sensitivities to different light wavelengths, corresponding to the colors red, green, and blue.

Apparent Movement

The perception of movement in a stationary object, or the perception of motion caused by certain visual cues or stimuli without actual motion.

Linear Perspective

A technique in art and photography that creates the illusion of depth on a flat surface, using converging lines to mimic how our eyes perceive distance.