Blank DVDs and Prerecorded DVDs Are Substitutes in Production

question 176

Multiple Choice

Blank DVDs and prerecorded DVDs are substitutes in production. An increase in the price of a blank DVD will lead to

• A) an increase in the supply of prerecorded DVDs.
• B) a decrease in the supply of prerecorded DVDs.
• C) an increase in the quantity supplied of prerecorded DVDs but not in the supply of prerecorded DVDs.
• D) a decrease in the quantity supplied of prerecorded DVDs but not in the supply of prerecorded DVDs.

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Definitions:

Transactions

Financial activities or events that affect the financial position of the company.

Owner's Equity Accounts

Accounts representing the owner’s claim or interest in the business assets after all liabilities have been deducted.

Credits

Entries on the right side of an account, indicating an increase in liabilities, equity, or revenue, or a decrease in assets or expenses.

Posting Reference Notation

A unique code or number used to track the entry of a transaction in the accounting records to its source document.