If Martina's Income Increases And,as a Result,she Chooses to Buy

question 16

Multiple Choice

If Martina's income increases and,as a result,she chooses to buy more lattés per month at each price,then her demand curve will

• A)shift to the right.
• B)shift to the left.
• C)not shift;instead,Martina will move along her demand curve downward and to the right.
• D)not shift;instead,Martina will move along her demand curve upward and to the left.

---

Definitions:

Merchandise Purchases

Transactions involving the buying of goods intended for sale, usually in a retail or wholesale context.

Ending Merchandise Inventory

The value of goods available for sale at the end of an accounting period, before any year-end adjustments.

Accrued Salaries Expense

Refers to the salaries that have been incurred by the business but have not yet been paid or recorded in the financial statements.

Completed-Contract Method

An accounting method used where revenue and profit are deferred until a contract is completed, particularly useful in long-term projects.