If Oranges and Grapefruit Are Close Substitutes, an Increase in the Price

question 202

Multiple Choice

If oranges and grapefruit are close substitutes, an increase in the price of oranges will shift the demand curve of

• A)both products to the right.
• B)both products to the left.
• C)grapefruit to the right.
• D)oranges to the left.

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Definitions:

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

Accounts Receivable

This is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its customers by comparing net credit sales to average accounts receivable.

Cash Sales

Transactions where payment is made in cash at the time of sale, without any credit terms.