If the Price for a Product Increases,the Demand for a Substitute

question 141

Multiple Choice

If the price for a product increases,the demand for a substitute product will

• A) decrease.
• B) increase.
• C) stay the same.
• D) become more elastic.
• E) become more inelastic.

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Definitions:

Uncollectible Accounts

Financial debts within accounts receivable that are considered unlikely to be recovered because customers are unable to fulfill payment obligations.

Credit Sales

Sales of goods or services that are not immediately paid for by the customer, leading to the creation of account receivables.

Direct Labour

Labor costs for employees who are directly involved in manufacturing goods or providing services, distinct from indirect labor costs.

Sales Units

The number of units of a product sold over a specific period of time.