Which of the Following Does NOT Shift the Demand Curve

question 482

Multiple Choice

Which of the following does NOT shift the demand curve for broccoli?

• A) an increase in the cost of fertilizer used to grow broccoli
• B) a warning by the U.S. Surgeon General that broccoli causes schizophrenia
• C) an increase in the price of spinach, a substitute for broccoli, because rodents gobbled up much of this year's spinach crop
• D) a decrease in the price of spinach, a substitute for broccoli, because of a bumper crop of spinach this year

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Definitions:

Bad Debt Percentage

Bad debt percentage is the proportion of receivables that a company expects not to collect, used in estimating the allowance for doubtful accounts.

Allowance

In accounting, an estimate for future adjustments to accounts receivable, reflecting debts that might not be collectible.

Allowances for Doubtful Accounts

Allowances for doubtful accounts is a contra asset account used to estimate the portion of a company's receivables that may ultimately not be collectible.

Bad Debt Expense

Bad debt expense represents the loss that a company incurs when it is unable to collect receivables from customers who are unable to pay their debts.