If the Price of Chocolate-Covered Peanuts Increases and the Demand

question 158

Multiple Choice

If the price of chocolate-covered peanuts increases and the demand for strawberry-flavored soft drinks decreases, this indicates that these two goods are:

• A) unrelated goods.
• B) complementary goods.
• C) inferior goods.
• D) substitute goods.

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Definitions:

Dividends Received

Income earned from investments in the form of payments distributed by a corporation to its shareholders.

Minority Interest

The portion of subsidiary companies' equity (net assets) that is not owned by the parent company; represents the outside shareholders' percentage of ownership in the subsidiary.

Parent Company

A corporation that owns enough voting stock in another corporation to control its management and operations, making the latter a subsidiary.

Outstanding Stock

The stock in the hands of stockholders.