Pizza and Hamburgers Are Substitutes for Consumers

question 344

Multiple Choice

Pizza and hamburgers are substitutes for consumers. A fall in the price of a pizza ________ the price of a hamburger and ________ the quantity of hamburgers.

• A) raises; increases
• B) raises; decreases
• C) lowers; increases
• D) lowers; decreases

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Definitions:

Fair Value

The market-based measurement of the value of an asset or liability, used for financial reporting purposes.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide the financial reporting activities of companies worldwide.

GAAP

Generally Accepted Accounting Principles, a common set of accounting principles, standards, and procedures that companies must follow when compiling their financial statements.

Double-Entry System

An accounting method that requires every financial transaction to be recorded in at least two accounts—where one account is debited and another is credited—to ensure accuracy and balance in the financial records.