For a Given Market Demand Curve, If the Market Clearing

question 287

Multiple Choice

For a given market demand curve, if the market clearing price increases, then the amount of producer surplus will

• A) decrease.
• B) increase.
• C) become negative.
• D) none of the above due to insufficient information.

---

Definitions:

Income Summary

An account used in the closing process during the accounting cycle that summarizes revenues and expenses before transferring the net income or loss to retained earnings.

Owner's Capital

The total value of assets contributed by the owner(s) to a business minus any withdrawals made by the owner(s).

Correcting Entry

An accounting entry made to correct errors found in the financial statements after they have been prepared.

Incorrect Entry

An error or mistake made in recording transactions in the accounting records.