Which of the Following Statements Is Correct

question 270

Multiple Choice

Which of the following statements is correct?

• A) An increase in the price of C will decrease the demand for complementary product D.
• B) A decrease in income will decrease the demand for an inferior good.
• C) An increase in income will reduce the demand for a normal good.
• D) A decline in the price of X will increase the demand for substitute product Y.

---

Definitions:

Support Department Costs

Expenses related to departments that do not directly generate revenue but provide essential services to revenue-generating departments.

Total Cafeteria Costs

The aggregate expenses associated with operating a cafeteria within a business, including food supplies, labor, and utilities.

Market Value

The current price at which an asset or service can be bought or sold in a marketplace, influenced by supply and demand.

Split-Off Point

The stage in a joint production process where multiple products become separately identifiable, leading to allocation of joint costs.