If Two Goods Are Substitutes, a Decrease in the Price

question 104

True/False

If two goods are substitutes, a decrease in the price of one will result in an increase in demand for the other.

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Definitions:

Business Conduct

The standards and practices that guide the behavior and operations of a company and its employees.

Society's Values

The principles and moral standards that are considered important and upheld by a group or society.

Enforceable in the Courts

Refers to the characteristic of legal agreements or actions that can be upheld or compelled by a court of law.

Competitive Forces

The various external pressures and challenges that companies face in the market, including competition from rival firms, potential new entrants, substitute products, bargaining power of buyers, and bargaining power of suppliers.