According to the Graph Shown, If the Price Were $15

question 125

Multiple Choice

According to the graph shown, if the price were $15, a:

• A) shortage would exist, signaling sellers to raise their price.
• B) shortage would exist, signaling buyers to leave the market.
• C) surplus would exist, signaling sellers to drop their price.
• D) surplus would exist, signaling buyers to bid up the price.

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Definitions:

Materials Requisitions

A document used to request the transfer of materials from a storeroom to a production area.

Controlling Account

The account in the general ledger that summarizes the balances of the accounts in a subsidiary ledger.

General Ledger

The primary ledger, when used in conjunction with subsidiary ledgers, that contains all of the balance sheet and income statement accounts.

Direct Materials

Raw materials that can be directly traced to the production of a specific product or service.