Suppose That College Tuition Is Higher This Year Than Last

question 91

Multiple Choice

Suppose that college tuition is higher this year than last year and that more students are enrolled in college this year than last year. Based on this information, we can best conclude that:

• A) the law of demand is invalid.
• B) despite the increase in price, quantity demanded rose due to some other factor changing.
• C) this situation has nothing to do with the law of demand.
• D) the demand for a college education is positively sloped.

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Definitions:

Acquired Net Assets

The total assets purchased from a company during an acquisition minus the liabilities assumed in the process.

Equipment Account

An account on the balance sheet where the cost of purchasing equipment is recorded and progressively depreciated over time.

Specific Identification

An inventory costing method that tracks the actual cost of each individual item in inventory and assigns this cost to the goods sold.

FIFO Assumption

The First-In, First-Out method is an accounting assumption used to manage inventory and cost of goods sold, assuming the first items placed into inventory are sold first.