Sugar and Honey Are Viewed as Substitutes for Each Other

question 75

Multiple Choice

Sugar and honey are viewed as substitutes for each other in many cooking applications.If the price of sugar rises, we would expect

• A)the demand for honey to increase
• B)the demand for honey to decrease
• C)the quantity demanded of honey to decrease
• D)the price of honey to decrease
• E)the quantity demanded of honey to increase

Recognize the significance of the market supply curve and its relation to individual firm supply in a competitive market.

Analyze the impact of market demand changes on firm behavior and market equilibrium in both the short and long run.

Apply the concept of opportunity costs and sunk costs to business decisions.

Evaluate the effects of entry and exit of firms in a perfectly competitive market on economic profits and resource allocation.

---

Definitions:

Agency Fund

A fiduciary account used by governmental entities to manage funds collected on behalf of others, such as taxes or grants.

Enterprise Fund

A fund used by a government to account for operations financed by user charges for services provided by the government.

Internal Service Fund

A fund used within governmental accounting to manage the costs and financing of services provided by one department to other departments on a cost-reimbursement basis.

General Fund

The primary operating fund of a governmental entity, covering most basic services like police, fire, sanitation, and general administration.