If a and B Are Substitutes in Production and the Price

question 130

Multiple Choice

If A and B are substitutes in production and the price of A falls, the supply of B

• A)decreases, and the price of B rises.
• B)increases, and the price of B rises.
• C)increases, and the price of B falls.
• D)decreases, and the price of B falls.
• E)does not change.

---

Definitions:

Financial Accounting

The field of accounting that focuses on preparing financial statements for external users, such as investors, creditors, and regulatory agencies.

External Users

Individuals or entities outside a company, such as investors, creditors, regulators, and customers, who use its financial information for making decisions.

External Auditing

The examination of financial records and statements by an independent third party, to ensure accuracy and adherence to accounting standards.

Private Accountant

An accountant employed by a single firm, business, or organization to handle its internal financial matters.