Purchases for May Were $100 000, While Expected Purchases for June

question 58

Multiple Choice

Purchases for May were $100 000, while expected purchases for June and July are $110 000 and $125 000, respectively. All purchases are paid 25% in the month of purchase and 75% the following month. At what amount are June payments for purchases budgeted?

• A)$121 250
• B)$102 500
• C)$107 500
• D)$110 000

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Definitions:

Close Substitutes

Goods or services that can easily replace each other in consumption, affecting consumer choice and market competition.

Quantity Demanded

The aggregate quantity of a product or service that buyers are prepared to buy at a given price point.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level and at a given time.

Quantity Supplied

Quantity supplied refers to the amount of a good or service that producers are willing and able to sell at a given price over a specific period.