If a Decrease in the Price of Good a Causes

question 273

Multiple Choice

If a decrease in the price of good A causes a decrease in demand for good B, the two goods are

• A) substitutes.
• B) complements.
• C) normal.
• D) inferior.

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Definitions:

Ending Equity

The value of an owner's interest in a company at the end of an accounting period, calculated as total assets minus total liabilities.

Net Income

Refers to the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Dividends

Dividends are the portion of profit a company decides to distribute to its shareholders, often on a regular basis.

Equity

The value of an asset after deducting the cost of liabilities, representing the owner's interest in a company.