When There Is an Increase in the Price of a Good

question 72

Multiple Choice

When there is an increase in the price of a good

• A)the demand curve will shift to the right.
• B)the demand curve will shift to the left.
• C)the elasticity of demand will determine the degree to which quantity demanded rises.
• D)the elasticity of demand will determine the degree to which quantity demanded falls.

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Definitions:

Journalizing

The procedure of logging company transactions in a journal, forming a part of the cycle of accounting.

Debit

An accounting entry showing an increase in assets or expenses or a decrease in equity, liabilities, or revenue.

Credit

An accounting entry that increases liabilities or equity, or decreases assets, reflecting the value of transactions where goods, services, or cash are received.

Cash Account

A financial account that tracks the amount of cash inflows and outflows, representing the company's liquid assets.