Suppose There Are Only Two Goods: Guns and Roses

question 21

Multiple Choice

Suppose there are only two goods: guns and roses.If the relative price of guns falls,then the relative price of roses

• A) must also fall.
• B) must rise.
• C) is unaffected.
• D) could rise,fall,or remain unchanged.

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Definitions:

Asset Accounts

Accounts on a company's balance sheet that represent valuable resources controlled by the company and that have future economic value.

Liability Accounts

Accounts on a company's balance sheet that represent what the company owes to others, such as loans, accounts payable, mortgages, and accrued expenses.

Journal Entries

The recording of financial transactions into the accounting records, specifying the accounts affected by those transactions.

Standard Format

A predefined layout or structure used to present data or information consistently.