New Oak Tables Are Normal Goods

question 119

Multiple Choice

New oak tables are normal goods.What would happen to the equilibrium price and quantity in the market for oak tables if the price of maple tables rises,the price of oak wood rises,more buyers enter the market for oak tables,and the price of the glue used in the production of the new oak tables increased?

• A)Price will fall,and the effect on quantity is ambiguous.
• B)Price will rise,and the effect on quantity is ambiguous.
• C)Quantity will fall,and the effect on price is ambiguous.
• D)Quantity will rise,and the effect on price is ambiguous.

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Definitions:

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers.

Financial Statements

Papers that summarize a corporation's financial status, featuring the balance sheet, income statement, and cash flow statement.

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and a portion of profits through dividends.

Generally Accepted Accounting Principles

The common set of accounting principles, standards, and procedures that companies use to compile their financial statements in the U.S.