If the Price of Apples Goes Down, Then the Demand

question 348

Multiple Choice

If the price of apples goes down, then the demand for pears will

• A) increase, assuming apples and pears are substitutes.
• B) decrease, assuming apples and pears are substitutes.
• C) decrease, assuming apples and pears are complements.
• D) remain constant, assuming apples and pears are related goods.

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Definitions:

Bonds Retired

The act of paying off or buying back issued bonds before their maturity date.

Machinery

Industrial or commercial devices or equipment designed to perform specific tasks, often contributing to the production of goods.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to reflect cash transactions.

Current Assets

Assets that are expected to be converted into cash, sold or consumed within one year or the operating cycle, whichever is longer.