A Shift of the Demand Curve from D₂ to D₃

question 2

Multiple Choice

A shift of the demand curve from D₂ to D₃ in Figure 13-5B above indicates

• A)fewer units are demanded at the given price.
• B)more units are demanded at the given price.
• C)the price has decreased.
• D)the price has increased.
• E)there is not enough information given to indicate what happened.

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Definitions:

Debit Memorandum

A document issued by a buyer to a seller indicating a debit made to the seller's account, often due to returned goods or errors in the invoice.

Subsidiary Ledger

A subsidiary ledger is a detailed ledger containing individual accounts with a common characteristic, which is summarized and presented in a single account in the general ledger.

Control Account

A summary account in the general ledger that consolidates and reflects the total amount of transactions recorded in subsidiary ledgers for easier oversight and reconciliation.