Figure: Price and Quantity 4 If the Figure Depicts

question 182

Multiple Choice

Figure: Price and Quantity 4 If the figure depicts a market for an inferior good, which of the following statements describes what could have happened?

• A) Consumer income increased, causing an increase in demand and an increase in supply.
• B) Consumer income decreased, causing an increase in demand and an increase in quantity supplied.
• C) The price of a substitute good increased, causing an increase in quantity demanded and an increase in quantity supplied.
• D) Consumers expect lower future prices, causing an increase in demand and an increase in supply.

---

Definitions:

Accounts Receivable Turnover

A financial metric that measures how often a company collects its average accounts receivable balance within a period.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects on its receivables or the speed of their credit sale conversions into cash.

Receivables Collected

The amount of money received from customers in payment of accounts receivable during a given period.

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and adjust the balance of accounts.