If a Decrease in Income Increases the Demand for a Good,then

question 29

Multiple Choice

If a decrease in income increases the demand for a good,then the good is a(n)

• A)substitute good.
• B)complementary good.
• C)normal good.
• D)inferior good.

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Definitions:

Equipment

Long-term assets that are used in the production of goods and services; these are tangible in nature.

Accounts Receivable

Obligations of customers to pay a company for goods or services that have been dispensed but remain unpaid.

Journalize

The process of recording transactions in a company's journal, marking the first step in the accounting cycle.

Transactions

Economic events that involve transferring resources between entities, affecting financial statements.