Which of the Following Leads to a Movement Along the Demand

question 181

Multiple Choice

Which of the following leads to a movement along the demand curve for spinach but does not shift the demand curve for spinach?

• A) a rise in the price of spinach
• B) a newly discovered health benefit from eating spinach
• C) an increase in the price of broccoli, a substitute for spinach
• D) an increase in income for all spinach lovers

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Definitions:

Merchandise Inventory

Goods or products that a company holds for the purpose of sale to customers in the ordinary course of business.

Capital

Financial assets or resources owned by an individual or organization, particularly those used to generate income or investment.

Adjusting Journal Entries

Journal entries that are needed in order to update specific ledger accounts to reflect correct balances at the end of an accounting period.

Worksheet

A tool used in accounting to consolidate all of the financial information and to prepare adjusting entries and financial statements.