Use the Information Below to Answer the Following Questions

question 68

Multiple Choice

Use the information below to answer the following questions.
Fact 9.3.2 Boom Time for "Gently Used" Clothes
Most retailers are blaming the economy for their poor sales, but one store chain that sells used name-brand children's clothes, toys, and furniture is boldly declaring that an economic downturn can actually be a boon for its business. Last year, the company took in $20 million in sales, up 5% from the previous year. Sales are already up 5% this year.
Source: CNN, April 17, 2008
-Refer to Fact 9.3.2. If the price of used clothing falls and income remains the same, the substitution effect ________ the quantity of used clothing bought and the income effect ________ the quantity of used clothing bought.

• A)increases; decreases
• B)increases; increases
• C)decreases; increases
• D)decreases; decreases
• E)does not change; increases

Identify cultural obstacles in mergers, acquisitions, and external competition.

Grasp the role of organizational language and special lingo in internal communication and integration.

Understand the concept of incremental analysis in decision-making.

Differentiate between relevant and irrelevant costs in decision scenarios.

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Definitions:

Economic Loss

A financial deficit suffered by a person or entity, often measured as the difference between actual earnings and expected earnings.

Trespass to Real Property

An unlawful entry onto land by a person without the permission of the owner, resulting in a legal violation.

Accidentally

Accidentally refers to an event happening by chance or without deliberate intent.

Intentional Infliction

A tort in civil law where an individual acts with intent to cause emotional distress to another person through outrageous or extreme conduct.