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:

Acts Of Owners

Decisions or actions taken by the owners of a company that affect the ownership structure or financial strategy.

Corporation

A legal entity separate from its owners, with the right to own assets, incur liabilities, and sell stock.

Obtain Capital

The process of securing funding or resources necessary for business operations, investments, or projects, typically through equity, debt, or other financial instruments.

Limited Life

Refers to the finite existence of a tangible or intangible asset or entity, emphasizing its bounded operational or functional period.