An Increase in the Price of Good X Will Be

question 22

Multiple Choice

An increase in the price of good x will be accompanied by:

• A)a shift in the market demand curve for good x.
• B)a shift in the market demand curve for good y (a substitute for good x).
• C)a movement along the market demand curve for good x.
• D)both b and c

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Definitions:

Normal Rate of Return

The typical amount of profit that an investment is expected to generate, considered as a benchmark or standard for comparison.

Negative Goodwill

Occurs when a company acquires another for a price less than the fair value of its assets. It is recognized as a gain in the acquirer's income statement.

Identifiable Net Assets

These are assets of an acquired entity that can be clearly identified and valued at the time of acquisition.

Fair Value

An estimate of the price at which an asset would trade in a fair market.