If Two Goods Are Substitutes in Consumption, A(n)

question 164

Multiple Choice

If two goods are substitutes in consumption, a(n) :

• A) decrease in the price of one product will cause an increase in the demand for the other product.
• B) decrease in the price of one product will cause a decrease in the demand for the other product.
• C) increase in the price of one product will cause an increase in the supply of the other product.
• D) increase in the price of one product will cause a decrease in the supply of the other product.
• E) increase in the price of one product will cause a decrease in the demand for the other product.

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Definitions:

Long-Range Budget

A financial plan that extends beyond the typical fiscal year, often spanning three to five years, to support strategic planning.

Participative Budgeting

A budgeting process where both management and employees participate in setting budgets, improving accuracy and commitment.

Budgeting Slack

The practice of underestimating revenue or overestimating expenses while preparing a budget to create a cushion or slack for unexpected situations.

Budgetary Slack

The practice of underestimating revenues or overestimating expenses when preparing a budget to create a buffer for unexpected scenarios.