If an Increase in the Supply of Good a Increases

question 109

Multiple Choice

If an increase in the supply of good A increases the demand for good B, then

• A)the demands for A and B are independent.
• B)the elasticity of supply for good A is greater than 1.
• C)A and B are complements.
• D)A and B are substitutes.
• E)the demand for A is price elastic.

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Definitions:

Credit Sales

Transactions where goods are sold and payment is received at a later date, extending credit to the buyer.

Gain from Sale

The profit realized from the sale of assets or investments when the selling price exceeds the original purchase price.

Operating Income

The profit earned from a firm's core business operations, excluding deductions of interest and taxes.

Operating Revenues

The income earned by a company from its normal business activities.