If a Decrease in Income Leads to in a Decrease

question 13

Multiple Choice

If a decrease in income leads to in a decrease in the demand for ice cream,then ice cream is

• A)a normal good.
• B)a neutral good.
• C)a complement.
• D)a necessity.

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Definitions:

Second Purchase

The act of buying a product or service for the second time after the initial purchase.

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the value of the business's reputation, brand, and other non-physical assets.

Acquisition Differential

The difference between the cost of acquiring an entity and the fair value of its identifiable net assets.

Voting Shares

Shares that give the stockholder the right to vote on matters of corporate policy making and the election of the board of directors.