Wages for Workers Producing IPods and Similar Products Will Rise

question 141

Multiple Choice

Wages for workers producing iPods and similar products will rise next year. Walkman Watch asks you to predict the effect of this change in next year's market for iPods. You predict that the major effect will be that the

• A) demand curve for an iPod will shift rightward.
• B) demand curve for an iPod will shift leftward.
• C) supply curve for an iPod will shift leftward.
• D) supply curve for an iPod will shift rightward.

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Definitions:

Cost of Goods Sold

This accounts for the direct costs attributable to the production of the goods sold in a company, including material and labor costs.

Merchandise Inventory Account

An account on a company's balance sheet that represents the products that a retail or wholesale company plans to sell.

Units of Inventory Purchased

The total quantity of items bought for resale or use in production during a specific period.