If the Price of Automobiles Were to Decrease Substantially,the Demand

question 173

Multiple Choice

If the price of automobiles were to decrease substantially,the demand curve for public transportation would most likely

• A)shift rightward.
• B)shift leftward.
• C)remain unchanged.
• D)remain unchanged while quantity demanded would change.

---

Definitions:

Matching Principle

An accounting principle that states expenses should be recognized in the same period as the revenue they helped generate.

Recorded

The act of entering financial transactions or information into accounting records.

Adjusting Entries

Entries made in the accounting records at the end of an accounting period to allocate incomes and expenses to the period in which they actually occurred.

Expense Accounts

Accounts used to record the consumption of economic benefits during the operational activities of a business.