An Increase in the Demand for Motorcycles Has Led to an Increase

question 47

Multiple Choice

An increase in the demand for motorcycles has led to an increase in the demand for motorcycle helmets. Based on this information, which of the following is likely to be true?

• A) Motorcycles and motorcycle helmets are considered to be substitute goods.
• B) The increase in demand for helmets will be represented as a movement along the demand curve for motorcycle helmets.
• C) Helmets are considered to be inferior goods.
• D) With an increase in the demand for motorcycles, the demand curve will shift inward toward the origin.
• E) In the demand equation for helmets, the coefficient associated with the price of motorcycles will be negative

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Definitions:

Subsidiary Ledger

A ledger containing all the details of a general ledger account, allowing for more detailed information and analysis of that account.

Cash Receipts Journal

A specialized accounting journal used to record all cash inflow transactions.

General Ledger

A comprehensive accounting record of all transactions of a company, detailed by accounts.

Sales Discounts Column

A column in accounting ledgers or software that records the discounted amounts given to customers for prompt payments or other reasons.