Linesha, a College Student Working Part-Time, Receives a Wage Increase

question 90

Multiple Choice

Linesha, a college student working part-time, receives a wage increase. An avid movie buff, she increased her purchases of Blu-ray discs and reduced her purchases of DVDs. Based on this information,

• A) DVDs and Blu-ray discs are substitutes.
• B) Blu-ray discs are normal goods and DVDs are inferior goods.
• C) DVDs and Blu-ray discs are normal goods.
• D) the cross-price elasticity between DVDs and Blu-ray discs is negative.

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Definitions:

Fiscal Year

A 12-month period used for accounting purposes and planning by organizations, which may not align with the calendar year.

Ledger

A comprehensive collection of a company's financial transactions, divided into individual accounts, and recorded in a way that balances are always maintained across assets, liabilities, and equity.

Physical Inventory

The manual count of all merchandise or stock in a store or warehouse at a particular time.

Estimated Returns Inventory

A reserve of products anticipated to be returned by customers, accounting for potential future merchandise returns.