Recall the Application About the Increase in Purchases of Hybrid

question 55

Multiple Choice

Recall the Application about the increase in purchases of hybrid vehicles to answer the following question(s) .
-According to the Application, one factor which was responsible for roughly one-third of hybrid vehicles purchased in 2007 was an increase in the price of gasoline. The increase in sales due to higher gasoline prices describes the economic concept of

• A) using assumptions to simplify.
• B) ceteris paribus.
• C) marginal thinking.
• D) rational self interest.

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Definitions:

Credit Sales Transactions

Transactions where goods or services are sold to a customer with an agreement that payment will be made at a later date.

Perpetual Inventory System

An accounting method that records inventory purchases and sales in real-time, continuously updating inventory balances.

Purchase Returns

Goods returned to a supplier from a buyer due to issues like defects or dissatisfaction, often leading to a refund or credit.

Periodic System

An inventory accounting system where updates to inventory levels and cost of goods sold are made at the end of an accounting period.