If a Is an Inferior Good and Consumer Income Rises,the

question 182

Multiple Choice

If A is an inferior good and consumer income rises,the demand for A

• A)increases,and the equilibrium price and the equilibrium quantity increase.
• B)increases and the equilibrium price rises,but the equilibrium quantity decreases.
• C)decreases,and the equilibrium price and the equilibrium quantity decrease.
• D)decreases and the equilibrium price falls,but the equilibrium quantity increases.
• E)decreases,the equilibrium price rises,and the equilibrium quantity decreases.

---

Definitions:

Direct Labor Cost

The expense associated with labor directly involved in the production process of goods or services, distinguishing from indirect labor costs like maintenance personnel.

Materials Used

The quantity and cost of raw materials consumed in the production process, including both direct and indirect materials.

Manufacturing Overhead Account

An accounting term that aggregates all indirect costs associated with manufacturing a product.

Adjusting

The process of making modifications to certain accounts through adjusting entries to reflect the true financial status of a business at the end of an accounting period.