The Price of Good X Increases by 25 Percent,causing the Quantity

question 98

Multiple Choice

The price of Good X increases by 25 percent,causing the quantity consumed of Good Y to decrease by 10 percent.If everything else is held constant in the economy,we can say with certainty that Good X and Good Y are

• A) substitutes.
• B) inferior.
• C) complements.
• D) normal.
• E) unrelated.

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Definitions:

Pre-Contract Statements

Statements made by parties involved before a contract is finalized, which may influence the agreement or understanding of the contract.

Consideration

In contract law, the benefit or value that each party agrees to exchange as part of a contractual agreement, which is a requirement for a valid contract.

Assignee

A person to whom an assignment is made.

Assignor

The maker of an assignment.