When the Price of a Good Rises, Consumers Are Willing

question 80

True/False

When the price of a good rises, consumers are willing to pay for fewer units, so there is a decrease in demand.

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Definitions:

Purchases Discounts

A reduction in the price of goods that a buyer can take advantage of if they pay by a certain date.

Periodic Inventory System

An inventory method where updates to inventory levels are made at specified periods, typically at the end of a financial year, rather than continuously.

Periodic Inventory System

An inventory accounting method where inventory levels and cost of goods sold are calculated at set intervals, such as monthly or yearly.

Closing Entries

The journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones, preparing the books for the next period.