There Are Two Universities,A and B,in a City

question 87

Multiple Choice

There are two universities,A and B,in a city.Tuition rises at University A and,as a result,the demand for attending University B rises.It follows that educational services at the two universities are

• A) complements.
• B) normal goods.
• C) inferior goods.
• D) substitutes.
• E) none of the above

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Definitions:

Balance Sheet

A balance sheet is a financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Par Common Stock

The face value assigned to common stock shares, representing the minimum amount that can be credited to share capital; it is not necessarily indicative of the market value.

Journalize

The act of recording business transactions in the journal, noting the accounts affected and their debits and credits.

Paid-In Capital

The total amount of money shareholders have invested in the company through the purchase of its stock.