If a Decrease in Income Leads to in a Decrease

question 13

Multiple Choice

If a decrease in income leads to in a decrease in the demand for ice cream,then ice cream is

• A)a normal good.
• B)a neutral good.
• C)a complement.
• D)a necessity.

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Definitions:

Price-earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, indicating market expectations.

Earnings Per Share

Earnings per share (EPS) is a financial metric that divides a company's profit by the number of outstanding shares, indicating the profitability attributed to each share.

Par Value

The nominal or face value of a stock or bond as stated by the issuing company, not necessarily reflecting its market value.

Statutory Restriction

Legal limitations or constraints, often imposed by law, that dictate how an organization can operate or use certain resources.