The Fish Stocks in the Atlantic Fishing Industry Have Decreased

question 71

Multiple Choice

The fish stocks in the Atlantic fishing industry have decreased. As a result, we would expect

• A)an increase in the demand for meat (e.g., beef)because meat is a complement of fish.
• B)a fall in the price of fish, leading to a decrease in the demand for meat, because meat and fish are substitutes.
• C)a fall in the price of fish, leading to an increase in the demand for meat, because meat and fish are substitutes.
• D)an increase in the demand for meat because meat is a substitute for fish.
• E)a rise in the price of fish, leading to a decrease in the demand for meat, because meat and fish are complements.

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Definitions:

Net Profit Margin

A financial ratio that shows the percentage of net income generated from total revenue.

Gross Margin

The difference between sales revenue and the cost of goods sold, representing the profitability before deducting operating expenses.

Return On Total Assets

A financial ratio that measures the net income produced by total assets during a period by comparing net income to the average total assets.

Return On Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how well a company uses investments to generate earnings growth.