Suppose Consumer Income Increases

question 83

Multiple Choice

Suppose consumer income increases.If grass seed is a normal good,the equilibrium price of grass seed will

• A)decrease,and producer surplus in the industry will decrease.
• B)increase,and producer surplus in the industry will increase.
• C)decrease,and producer surplus in the industry will increase.
• D)increase,and producer surplus in the industry will decrease.

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Definitions:

Adjusting Entries

Adjusting entries are journal entries made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Routine Entry

Regular, often daily, accounting entries that reflect standard business transactions.

Accrued

Describes expenses or revenues that have been incurred but not yet recorded through a payment or receipt, reflecting in accounts payable or receivable.

Deferred

Refers to items or transactions that have been postponed or delayed to a future date.