If the Price of Tea Falls and as a Consequence

question 73

Multiple Choice

If the price of tea falls and as a consequence the demand for sugar rises, then tea and sugar are

• A)luxury goods.
• B)independent goods.
• C)complementary goods.
• D)neutral goods.
• E)substitute goods.

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Definitions:

Original Price

The initial selling price of a good or service before any discounts, deductions, or adjustments are applied.

Debit Memorandum

Decrease in depositor’s balance.

Perpetual Inventory Method

A system of inventory management where adjustments to inventory records are made on a continuous basis as sales and purchases happen.

Merchandise Inventory

The goods a company holds for the purpose of resale to customers.