Tomas Increased His Consumption of Potato Chips When the Price

question 229

Multiple Choice

Tomas increased his consumption of potato chips when the price of pistachios increased.For Tomas, potato chips and pistachios are

• A)substitutes in consumption.
• B)both inferior goods.
• C)complements in consumption.
• D)both luxury goods.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Credit Sales

Transactions where the goods or services are provided to a customer with an agreement that payment will be made at a later date.

EOQ

Economic Order Quantity is the ideal quantity of inventory a company should purchase to minimize the total costs of ordering and holding.

Quantity Discount

A pricing strategy where the price per unit of an item is reduced based on the quantity purchased, incentivizing larger orders.