Assume That Apples and Oranges Are Substitute Goods

question 19

Multiple Choice

Assume that apples and oranges are substitute goods.Given the initial supply and demand curves for apples,a reduction in the price of oranges will tend to

• A)increase the price of apples.
• B)increase the demand for apples.
• C)increase the demand for oranges.
• D)decrease the demand for oranges.
• E)decrease the price of apples.

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Definitions:

Merchandising Income Statement

A financial statement detailing the gross profit, expenses, and net profit or loss of a retail or wholesale business.

Administrative Expenses

Overheads and general expenses related to the day-to-day management and operation of a business, excluding production and direct costs.

Operating Income

The profit realized from a business's core operations, excluding revenue from investments and costs such as interest expenses and taxes.

Cost Of Goods Sold

The specific costs tied to the production of goods sold by a company, which include the cost of materials and labor.