Consider the Market for Smart Phones

question 119

Multiple Choice

Consider the market for smart phones.Which of the following shifts the demand curve rightward?

• A) an increase in the price of smart phones
• B) a decrease in the price of smart phones
• C) an increase in the price of land-line phone service, a substitute for smart phones
• D) a decrease in the number of smart phone buyers
• E) an increase in the supply of smart phones.

---

Definitions:

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding direct production costs, such as rent, utilities, and administrative salaries.

Perpetual Inventory System

An inventory accounting system where adjustments to inventory levels are continuously recorded on a transaction by transaction basis.

Acquisition of Merchandise

The process of obtaining goods for sale, typically involving selection, ordering, and purchasing from suppliers.

Inventory Account

An inventory account is an account on the balance sheet that represents the value of unsold goods held by a company.