An Increase in Income Will

question 58

Multiple Choice

An increase in income will

• A)increase the demand for SUVs if SUVs are inferior goods.
• B)always increase the demand for SUVs.
• C)increase the supply of SUVs.
• D)decrease the demand for SUVs if SUVs have a very low price.
• E)increase the demand for SUVs if SUVs are normal goods.

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Definitions:

Useful Life

The estimated duration over which an asset is expected to be economically useful to its owner.

Statement of Financial Position

A financial document presenting an entity's assets, liabilities, and equity at a specific date, more commonly known as a balance sheet.

Prepayment Accounts

Accounts that reflect payments made in advance for expenses that will be incurred in future periods, treated as assets until used.

Supplies Expense

Costs associated with the consumable items that are used in the daily operations of a business and not intended for resale.