If Producers Must Obtain Higher Prices Than Previously to Produce

question 100

Multiple Choice

If producers must obtain higher prices than previously to produce various levels of output, there has occurred:

• A)a decrease in demand.
• B)an increase in demand.
• C)a decrease in supply.
• D)an increase in supply.

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Definitions:

FOB Destination

A shipping term indicating that the seller retains ownership and responsibility for the goods until they are delivered to the buyer's specified location.

Ending Inventory Balance

The total value of all goods available for sale at the end of an accounting period.

Net Realizable Value

The estimated selling price of goods minus the costs of their sale or disposal, utilized in inventory valuation and accounts receivable.

Internal Controls

Systems and procedures implemented by a company to ensure integrity of financial and accounting information, promote accountability, and prevent fraud.