-In Figure 9-13,a Movement of Equilibrium from Point D to Point

question 142

Multiple Choice

-In Figure 9-13,a movement of equilibrium from point D to point C could be caused by a(n)

• A)decrease in supply from S₂ to S₁ in response to economic profits following a decrease in demand from D₂ to D₁
• B)increase in short-run supply from S₁ to S₂
• C)increase in supply from S₁ to S₂ in response to economic profits caused by an increase in demand from D₁ to D₂
• D)an increase in demand from D₁ to D₂ in the short run

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account that represents the estimated amount of accounts receivable which may not be collected.

Estimated Realizable Value

The anticipated amount of money that an asset is expected to bring upon sale or disposition, after accounting for costs of sale or disposal.

Accounts Receivable

Accounts receivable are amounts owed to a company by its customers for goods or services delivered on credit but not yet paid for.

Allowance Method

The allowance method is an accounting technique that estimates and accounts for bad debts, recognizing that a certain percentage of accounts receivable may not be collectible.