The Fact That Millions of Consumers Are Using Online Search

question 145

Multiple Choice

The fact that millions of consumers are using online search engines for comparison shopping has:

• A) reduced demand.
• B) increased price elasticity of demand.
• C) reduced the income effect.
• D) reduced price elasticity of demand.
• E) increased the income effect.

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Definitions:

Adjusting Entries

Journal entries made in an accounting period to update the records for accruals and deferrals that have not been fully recorded during the period.

Deferral

A future revenue or expense initially recorded as a liability or asset.

Prepaid Rent

An expense that is paid in advance for the use of property or equipment, recognized over the period of usage.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenses to the periods in which they actually occurred.