Two Goods Are Substitutes If

question 47

Multiple Choice

Two goods are substitutes if:

• A) an increase in the price of one leads to a shift to the left in the demand curve for the other.
• B) an increase in the price of one leads to an increase in demand for the other.
• C) an increase in the price of one will increase the supply of the other.
• D) a fall in the price of one leads to a reduction in supply for the other.

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Definitions:

Quarter

A three-month period on the financial calendar that companies use to report their earnings and performance.

Account

A document detailing all the transactions related to a particular element within the accounting equation.

Ordinary Annuity

Invariable payments issued at the terminal of consecutive intervals over an exact length of existence.

Nominal Interest

The rate of interest before adjustments for inflation, as opposed to real interest rates which are adjusted.