An Increase in the Price of Heinz Ketchup Is Likely

question 88

Multiple Choice

An increase in the price of Heinz ketchup is likely to cause a(n) _____ in the demand for Hunt's ketchup, due to a change in _____.

• A) increase; consumer preferences
• B) increase; the price of a substitute good
• C) decrease; consumer preferences
• D) increase; the price of a complementary good

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Definitions:

Accounts Receivable

Funds due from customers to a firm for delivered goods or services that remain unpaid.

Carrying Costs

Expenses incurred by a company for holding inventory over a period of time.

Ordering Costs

The expenses associated with placing and receiving orders for inventory, including costs related to processing, shipping, and handling.

Accounts Receivable

Receivables from customers for goods or services already supplied by the company but payment has not been made.