Two Goods Are Considered Substitutes If

question 129

Multiple Choice

Two goods are considered substitutes if

• A) a decrease in the demand for one leads to a decrease in the supply of the other.
• B) an increase in the demand for one leads to a decrease in the supply of the other.
• C) an increase in the price of one leads to an increase in the demand for the other.
• D) a decrease in the price of one leads to an increase in the demand for the other.
• E) a decrease in the supply of one leads producers to switch to production of the other.

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Definitions:

Loans Payable

Obligations of a company to repay borrowed money in the future.

Impaired

A term used to describe an asset whose market value has decreased below its book value on the balance sheet.

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its tangible and identifiable intangible assets.

Consolidated

Combines the financial statements of the parent company and its subsidiaries into one comprehensive financial statement, presenting the financial performance and position as a single entity.