When a Rise in the Price of One Item Results

question 159

Multiple Choice

When a rise in the price of one item results in a decrease in the demand for another good, then the two goods are

• A) substitute goods.
• B) complementary goods.
• C) inferior goods.
• D) satisfying the law of supply.

---

Definitions:

Comparative Balance Sheet

A comparative balance sheet presents the financial position of a company at different points in time side by side, to analyze trends or changes in financial status.

Net Loss

Net loss refers to the result when a company's total expenses exceed its total revenues during a specific period, indicating a negative profitability.

General Ledger

A complete record of all the financial transactions over the lifetime of a company, serving as the primary source of accounting data.

Investing Activities

Deals related to buying and selling long-term assets and investments that are not considered as cash equivalents.