The Figure Given Below Represents the Demand and Supply Conditions

question 36

Multiple Choice

The figure given below represents the demand and supply conditions of an economy.
Figure 7.3



-Refer to Figure 7.3. Which of the following explains the shift in supply curve from S₁ to S₂?

• A) decreases in oil supplies as experienced in the 1970s.
• B) wage concessions by union members.
• C) businesses reducing their profit margins.
• D) discoveries of natural gas.
• E) increased foreign demand for domestic products.

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Definitions:

Reversing Entries

Journal entries typically made at the beginning of an accounting period to negate certain adjusting entries made in the previous period for the sake of simplicity in accounting.

Accrue Salary Expense

The process of recognizing salaries incurred by employees during a period but not yet paid by the company.

Salaries Payment

The process of distributing money to employees as compensation for their work.

Prepaid Subscriptions

Payments made in advance for subscription-based services, recognized as an asset until the service period has been fulfilled.