Use the Figure Below to Answer the Following Questions

question 106

Multiple Choice

Use the figure below to answer the following questions.

Figure 6.1.1
-Refer to Figure 6.1.1. If the demand for rental housing increases and the demand curve shifts rightward from D₀ to D₁, and the market is unregulated, the number of rooms rented is

• A)1,500, and the rent rises to $200 a month.
• B)2,000, and the rent is at its initial level.
• C)1,750, and the rent rises to $175 a month.
• D)2,000, and the rent rises to $200 a month.
• E)1,750, and the rent rises to $200 a month.

---

Definitions:

FIFO Method

"First In, First Out," an inventory valuation method where goods first purchased or produced are the first to be sold or used.

Inventory Records

Documentation that tracks the quantity, purchase costs, and sale prices of products available for sale, crucial for accurate inventory management and financial reporting.

Periodic Inventory

An inventory system where the inventory level is updated at specific intervals.

Ending Inventory

Ending inventory is the total value of inventory still on hand at the end of an accounting period, calculated by adding new purchases to beginning inventory and subtracting the goods sold.