If a Consumer's Income Increases

question 2

Multiple Choice

If a consumer's income increases:

• A)There will be a change in demand.
• B)There will be a movement along the demand curve.
• C)There will be an increase in the quantity demanded, but the demand curve will not shift.
• D)b and c
• E)None of the above.

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Definitions:

Intangible Assets

Assets having no physical substance (such as patents or franchises).

Current Assets

Assets that are expected to be converted into cash, sold, or consumed during the next 12 months or within the business's normal operating cycle if longer.

Prepaid Insurance

A current asset account that represents the amount of insurance premiums paid in advance for coverage extending beyond the current accounting period.

Accounts Payable

Amounts a company owes because it purchased goods or services on credit from a supplier or vendor.