Last Year,Shelley Bought 6 Pairs of Designer Jeans When Her

question 359

Multiple Choice

Last year,Shelley bought 6 pairs of designer jeans when her income was $40,000.This year,her income is $50,000,and she purchased 10 pairs of designer jeans.Holding other factors constant,it follows that Shelley

• A) considers designer jeans to be a necessity.
• B) considers designer jeans to be an inferior good.
• C) considers designer jeans to be a normal good.
• D) has a low price elasticity of demand for jeans.

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Definitions:

Non-controlling Interest

Equity interest in a subsidiary held by investors other than the parent company, representing their claim to the subsidiary's earnings and assets.

Entity Method

an approach in accounting where the financial transactions of a parent company and its subsidiaries are kept separate, instead of being consolidated.

Consolidated Shareholders' Equity

Represents the total equity interest in a company, including common stock, preferred stock, retained earnings, and accumulated other comprehensive income, as shown in the consolidated financial statements.

Parent-Company Extension Method

A method in accounting where the parent company extends its financial statements to include the financial activities of its subsidiaries as if they are part of the parent company itself.