Examlex
Which one of the following eliminates voluminous details from the auditor's working trial balance by classifying and summarising similar or related items?
Substitution Effect
The economic principle that as the price of a good or service rises (or incomes decrease), consumers will replace pricier items with less costly alternatives, holding the utility derived from consumption constant.
Price Decreases
Price decreases occur when the cost of goods or services goes down, often due to factors like increased competition, lower demand, or decreases in production costs.
Income Effect
The effect of changes in either individual or economic income on the demand levels for goods or services.
Inferior Good
A type of good whose demand decreases as consumer income rises, meaning it is often replaced by more desirable goods as financial circumstances improve.
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