The Price of Good B Increases by 4 Percent, Causing

question 271

Multiple Choice

The price of Good B increases by 4 percent, causing the quantity demanded of Good A to decrease by 6 percent. The cross-price elasticity of demand is ________, and the goods are ________.

• A) 1.5; substitutes
• B) -1.5; complements
• C) 0.67; complements
• D) -0.67; substitutes

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Definitions:

Bank Reconciliation

Bank reconciliation is the process of matching and comparing an entity’s bank account records to its financial statements.

Cashier Deposits

Refers to the funds that cashiers collect and deposit into the business's bank account, typically part of daily sales transactions.

Bonded Employees

Employees who have been guaranteed by a bonding company against theft or misconduct, offering protection to the employer.

Cash Over and Short

An account that records any discrepancies between physical cash and the recorded amount, used to track overages and shortages.