Which of the Following Pairs of Goods Would Be Considered

question 37

Multiple Choice

Which of the following pairs of goods would be considered substitutes?

• A) Milk and cookies.
• B) Tires and automobiles.
• C) Ink and pens.
• D) Coca-Cola and Pepsi.
• E) Computers and computer software.

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Definitions:

Selling Price

The amount a buyer pays to acquire a product or service, potentially including discounts, allowances, and added taxes.

Fixed Expense

Costs that do not change with the level of production or business activity, such as rent or salaries.

Break-even

The juncture where the total expenses match the total income, leading to a situation where there is no profit or loss.

Selling Price

The amount of money charged for a product or service, determined by cost, market demand, and competition.