The Observation That the Demand Curve for Grape Jelly Shifts

question 233

Multiple Choice

The observation that the demand curve for grape jelly shifts rightward every time the price of peanut butter falls means that grape jelly and peanut butter are

• A) complements.
• B) substitutes.
• C) inferior goods.
• D) normal goods.

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Definitions:

Net Profits

The sum left over once all costs, taxes, and expenses have been deducted from the total income.

Partnership Status

The legal standing of a business entity comprising two or more individuals who share management and profits.

Compensation

Payment or benefits awarded to individuals for their services, labor, or for losses suffered.