Figure 4-7 -Refer to Figure 4-7.The Movement from Db to Da in to Da

question 78

Multiple Choice

Figure 4-7
-Refer to Figure 4-7.The movement from Db to Da in the market for potato chips could be caused by a(n)

• A)decrease in the price of potato chips.
• B)decrease in income,assuming that potato chips are a normal good.
• C)announcement by the FDA that potato chips lower cholesterol.
• D)increase in the price of a pretzels.

---

Definitions:

Ending Inventory

Ending inventory is the total value of all unsold goods a company has at the end of an accounting period, calculated before the new fiscal period begins.

Retail Method

An accounting method used to estimate the ending inventory and cost of goods sold based on the retail price of merchandise.

Estimated Cost

An approximation of the financial outlay required to complete a project, acquire a service, or purchase goods, often used in budgeting and planning.

Inventory

A company's inventory of products and materials, accumulated for selling or using in production.