Supply and Demand Analysis Suggests That a Sharp Increase in the Price

question 85

Multiple Choice

Supply and demand analysis suggests that a sharp increase in the price of gasoline will cause the

• A) price of fuel-efficient compact cars to decrease.
• B) supply of gasoline to decrease.
• C) demand for large luxury cars to increase.
• D) demand for fuel-efficient cars to increase.

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Definitions:

Notes Payable

Written agreements where a borrower promises to pay back a specified sum to the lender at a future date.

Adjusting Entry

A journal entry made at the end of an accounting period to record any unrecognized income or expenses for that period.

Sales Tax

Sales tax is a government levy imposed on the sale of goods and services, collected by the seller from the buyer at the point of sale.

Cash Sales

Transactions in which payment is received at the time of sale, typically in cash or equivalent.