If the Price of One Good Increases and the Quantity

question 95

Multiple Choice

If the price of one good increases and the quantity demanded of a different good decreases, then these two goods are

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

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Definitions:

Budget Constraint

The limitations on the consumption patterns of individuals or households, given their income and the prices of goods and services.

Choice Set

A collection of all possible options available to a consumer or decision-maker.

Choice Set

A collection of all the possible options available for a consumer to choose from in making a decision.

Clothing

Fabrics and textiles used for making garments that are worn on the body.