There Are Many Options Available to Consumers When It Comes

question 84

Multiple Choice

There are many options available to consumers when it comes to breakfast cereals.So,if Kellogg's significantly increases the price of Rice Krispies,consumers are more apt to buy alternate cereals instead.This illustrates which concept?

• A) the income effect
• B) the substitution effect
• C) the break-even point
• D) the target return effect
• E) cross-price elasticity

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Definitions:

Commercial Substance

A concept in accounting that refers to a transaction causing a significant change in the cash flows or financial status of a company.

Invoice Price

The price at which a seller lists a product for sale to a buyer, often detailed in a purchase invoice.