If a Technological Advance Takes Place in the Computer Industry

question 477

Multiple Choice

If a technological advance takes place in the computer industry, then the equilibrium price of a computer will ________ and the equilibrium quantity will ________.

• A) fall; increase
• B) fall; decrease
• C) rise; increase
• D) rise; decrease

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Definitions:

Purchases Journal

The purchases journal is a record of all purchases of goods intended for resale made by a business, listing amounts, suppliers, and dates.

Purchase Invoices

Documents issued by a supplier to a buyer relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer.

Sales Invoices

Official documents issued by a seller to a buyer, detailing the products or services sold, quantities, and agreed prices for products or services the seller has provided the buyer.

Subsidiary Ledger

A detailed ledger that contains detailed financial information associated with specific accounts, which is summarized in the general ledger.