Pizza and Hamburgers Are Substitutes for Consumers

question 344

Multiple Choice

Pizza and hamburgers are substitutes for consumers. A fall in the price of a pizza ________ the price of a hamburger and ________ the quantity of hamburgers.

• A) raises; increases
• B) raises; decreases
• C) lowers; increases
• D) lowers; decreases

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Definitions:

Current Assets

Assets likely to be converted into cash within a year, such as inventory, accounts receivable, and cash and cash equivalents.

Current Liabilities

Short-term financial obligations that are due within one year or within the operating cycle.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of a business, whichever is longer.

Current Ratio

A financial metric that compares a company's current assets to its current liabilities, indicating liquidity levels.