If the Market for a Good Is Initially in Equilibrium

question 132

Multiple Choice

If the market for a good is initially in equilibrium and there is a rightward shift of the demand curve,then

• A) the equilibrium price will fall
• B) there will be a rightward movement along the supply curve
• C) the supply curve will also shift to the right
• D) the supply curve will shift to the left
• E) the demand curve will shift back as consumers react to the higher equilibrium price

Recognize the role of inventory accounts in reflecting the standard costs and variances.

Understand the impact of transactions on the Work in Process inventory account.

Comprehend the recording of raw material transactions and their effect on inventory accounts.

Grasp the application of standard costing in accounting for direct labor.

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Definitions:

Bait-And-Switch

A deceptive marketing practice where customers are lured by advertisements for a product at a low price, only to be persuaded to buy a more expensive item.

Lower-Quality Substitute

An alternative option that is considered to be of lesser quality or value compared to the original or preferred choice.

Purchase Order

A form that authorizes a purchase for the practice.

Authorizes Purchase

The act of giving official permission for acquiring goods or services, typically involving a formal approval process within organizations.