If Vodka and Whiskey Are Substitutes,which of the Following Can

question 138

Multiple Choice

If vodka and whiskey are substitutes,which of the following can we conclude?

• A)A ban on vodka imports would increase the price of whiskey.
• B)The demand for vodka would increase if the price of whiskey fell.
• C)The demand for whiskey would increase if the price of vodka fell.
• D)An increase in the tariff imposed on vodka imports would reduce the price of whiskey.

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Definitions:

Subsidiary

A company that is controlled by another company, commonly known as the parent company, through ownership of more than half of its voting stock.

Unrealized Loss

A loss that results from holding onto an asset that has decreased in price, but has not yet been sold.

Trading Investments

Investments in securities for the purpose of selling them in the near term to generate profit from short-term price fluctuations.

Statement of Income

A financial document that reports a company's financial performance over a specific period, detailing revenues, expenses, and net profit or loss.