Which of the Following Is the Most Likely Effect of Lower

question 103

Multiple Choice

Which of the following is the most likely effect of lower apple juice prices on the price and quantity purchased of orange juice, a substitute product?

• A) The price of orange juice will increase, and the quantity purchased will fall.
• B) The price of orange juice will fall, and the quantity purchased will increase.
• C) The price of orange juice will increase, and the quantity purchased will increase.
• D) The price of orange juice will fall, and the quantity purchased will fall.

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Definitions:

Variance

A statistical measure that represents the dispersion or spread of a set of data points or investment returns around their mean or average value.

Total Rate of Return

A measure of the total gain or loss on an investment over a specified period, including both capital gains and dividends or interest.

Total Dollar Return

The overall financial gain or loss on an investment, expressed in dollars, including dividends, interest, and capital gains.

Dividend Payments

Cash payments made by a company to its shareholders as a distribution of profits.