Elle Decreased Her Consumption of Bananas When the Price of Peanut

question 128

Multiple Choice

Elle decreased her consumption of bananas when the price of peanut butter increased. For Elle, peanut butter and bananas are:

• A)substitutes in consumption.
• B)both inferior goods.
• C)complements in consumption.
• D)both luxury goods.

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Definitions:

Average Raw Materials Inventory

A measure of the average amount of raw materials on hand over a certain period, indicating how efficiently a company manages its stock of raw supplies.

Total Quality Management

An organization-wide approach to continuously improving the quality of products, services, and processes by focusing on customer satisfaction.

Inventory

The total amount of goods or materials held by a company for the purpose of resale or production.

Produces

To create, manufacture, or bring forth goods or services.