Suppose that for emily, dvds and trips to the movie theater are perfect substitutes. currently, emily is spending all of her income on trips to the movie theater. if the price of dvds doubles, the substitution effect will
a. be zero.
b. be half the income effect.
c. be two times the income effect.
d. always increase the number of trips to the movie theater emily makes.

Acompany has $80,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. experience suggests that 6% of outstanding receivables are uncollectible. the current credit balance (before adjustments) in the allowance for doubtful accounts is $1,200. the journal entry to record the adjustment to the allowance account includes a debit to bad debts expense for $4,800. true or false