Refer to the Accompanying Figure

question 56

Multiple Choice

Refer to the accompanying figure. Suppose the solid line shows the current demand for coffee. In response to a news story explaining that coffee causes heart disease, you should expect:

• A)the quantity of coffee demanded to decrease, but no shift in the demand curve.
• B)the demand curve to shift to D(A)because some people will stop drinking coffee.
• C)the demand curve to shift to D(
• B)in anticipation of higher future prices.
• D)neither a change in quantity demanded nor a shift in demand.

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Definitions:

Purchase Requisitions

Purchase requisitions are formal requests made within an organization to purchase goods or services, typically before a purchase order is created and allocated the necessary budget.

Purpose

The purpose behind why something is done, created, or exists.

Petty Cash Fund

A small amount of cash on hand used for minor or incidental expenses within a business.

Journal Entries

Records of financial transactions within the accounting system of a business, showing the accounts affected and the amounts involved.