Table 3-D
Use the Following Information About Demand and Supply

question 19

Multiple Choice

Table 3-D
Use the following information about demand and supply schedules to answer the question.
$$\begin{array} { l c c c } \text { Price } & \mathbf { D } _ { 1 } & \mathbf { D } _ { \mathbf { 2 } } & \boldsymbol { I } _ { \mathbf { 1 } } \\\$ 12 & 5 & 9 & 19 \\\$ 10 & 8 & 12 & 17 \\\$ 8 & 11 & 15 & 15 \\\$ 6 & 13 & 18 & 13 \\\$ 4 & 16 & 21 & 11 \\\$ 2 & 18 & 24 & 9\end{array}$$
-Refer to Table 3-D.Suppose the demand schedule for Good A changes from D₁ to D₂ because the price of a related good, Good B, decreases.We can say:

• A)that Good B is likely a complement to Good A.
• B)that Good B is likely a substitute for Good A.
• C)that Good B is likely inferior to Good A.
• D)that Good B is not related to Good A.

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Definitions:

Retained Earnings

The portion of net earnings not distributed as dividends to shareholders but retained by the company to reinvest in its core business or to pay debt.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue.

Dividend

A payout of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Treasury Stock

Treasury stock represents shares of a company's own stock that it has reacquired and holds, which do not confer voting rights or dividend payments.