The Price of Product X Has Just Been Increased by 20

question 35

Multiple Choice

The price of product X has just been increased by 20%. Product Y's sales increase as a result of Product X's price increase. Which of the following is true?

• A) product X and product Y are substitute goods.
• B) product X and product Y are complementary goods.
• C) product X and product Y are both normal goods.
• D) product X and product Y are not related.
• E) product X and product Y are both superior goods.

---

Definitions:

Competencies

The combination of observable and measurable knowledge, skills, abilities, and personal attributes that contribute to enhanced employee performance and ultimately result in organizational success.

Firm-Specific Human Capital

Skills, knowledge, and abilities that an employee acquires through training and experience that are valuable to a specific firm.

Tacit Knowledge

Knowledge that is difficult to transfer to another person by means of writing it down or verbalizing it, often gained through personal experience.

Civilian Conservation Corps

A public work relief program in the United States during the Great Depression that provided unskilled manual labor jobs related to the conservation and development of natural resources.