Which of the Following Is the Most Likely Effect of Higher

question 294

Multiple Choice

Which of the following is the most likely effect of higher chicken prices on the price and quantity purchased of beef, a substitute product?

• A) The price of beef will increase, and the quantity purchased will fall.
• B) The price of beef will fall, and the quantity purchased will increase.
• C) The price of beef will increase, and the quantity purchased will increase.
• D) The price of beef will fall, and the quantity purchased will fall.

---

Definitions:

Sales Volume

refers to the number of units sold within a reporting period, used as a measure of business performance and market demand.

Variable Costs

Expenses that change in proportion to the production output or sales of a company, such as raw materials and direct labor costs.

Fixed Costs

Costs that do not change with the level of output or sales in the short term, such as rent, salaries, and insurance premiums.

Initial Investment

The sum of money allocated to initiate a project, acquire an asset, or invest in a business operation.