Good a and Good B Are Substitutes in Production

question 316

Multiple Choice

Good A and good B are substitutes in production. The demand for good A increases so that the price of good A rises. The increase in the price of good A shifts the

• A) demand curve for good B leftward.
• B) demand curve for good B rightward.
• C) supply curve of good B leftward.
• D) supply curve of good B rightward.

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Definitions:

After-tax Gain

The profit remaining after all taxes have been deducted.

Cost Method

An accounting method used to value an investment, where the investment is recorded at its acquisition cost without reflecting changes in its market value.

Consolidated Income Statement

A financial statement that summarizes the financial performance of a company and its subsidiaries.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the efficiency of core operations.