Suppose the Price of Coffee Is $3, the Price of a Bagel

question 99

Multiple Choice

Suppose the price of coffee is $3, the price of a bagel is $2 and a person's budget is $40. The budget line's equation is

• A) $2(Qbagel ) + $3(Qcoffee ) = $40.
• B) Qbagel /$2 + Qcoffee /$3 = $40.
• C) Qbagel + Qcoffee = $40/($3 + $2).
• D) $2/Qbagel + $3/Qcoffee = $40.

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Definitions:

Subsidiary Ledgers

Detailed ledgers that contain information about transactions for individual components, such as customers or suppliers, which are then summarized in the general ledger.

General Ledger

A comprehensive record of a company's financial transactions over the life of the organization, organized by accounts.

Division of Labor

Division of labor is the separation of tasks in any economic system or organisation so that participants may specialize, increasing efficiency and productivity.

Multi-Column Journal

An accounting journal that contains multiple columns for recording financial transactions in a systematic way.