If Two Goods Are Substitutes,then an Increase in the Price

question 23

Multiple Choice

If two goods are substitutes,then an increase in the price of one will cause:

• A) a leftward shift of the demand curve for the other good.
• B) a rightward shift of the demand curve for the other good.
• C) a movement up and to the left along the demand curve for the other good.
• D) a movement down and to the right along the demand curve for the other good.

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Definitions:

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects on its receivables or the speed of their credit sale conversions into cash.

Receivables Collected

The amount of money received from customers in payment of accounts receivable during a given period.

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and adjust the balance of accounts.

Uncollectible Accounts

Accounts receivable that are considered unlikely to be collected and written off as a loss.