If Two Commodities Are Substitutes,then

question 73

Multiple Choice

If two commodities are substitutes,then

• A)they tend to be used together by consumers
• B)their prices are generally regulated by the government
• C)an increase in the price of one of them increases the supply of the other
• D)the cross-price elasticity of demand is positive
• E)the cross-price elasticity of demand is negative

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Definitions:

MACRS Depreciation

The Modified Accelerated Cost Recovery System is a method of depreciation for tax purposes in the United States, allowing for faster depreciation of assets in the early years.

Double-Declining-Balance

A method of accelerated depreciation which computes depreciation at twice the straight-line rate, applied to a decreasing book value each year.

Footnote Disclosure

Additional information provided at the bottom of financial statements, explaining the numbers or policies above.

Cumulative Effect Change

The aggregate change in a company's earnings resulting from a change in accounting principle, reported in the period in which the change is made.