If the Price of Good a Decreases by 10 Percent

question 181

Multiple Choice

If the price of good A decreases by 10 percent and the quantity demanded of good B decreases by 10 percent, this is evidence that goods A and B are

• A)substitutes for one another.
• B)complement goods to one another.
• C)both inferior goods.
• D)both normal goods.
• E)not related.

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Definitions:

Universal Theory

A concept or idea that is believed to apply universally across cultures, situations, or conditions, often seeking to explain a broad phenomenon.

Think Strategically

The ability to envision long-term goals and objectives, and to formulate plans and approaches that ensure the achievement of these goals in an efficient and effective manner.

Big Picture

An overall or comprehensive view or perspective of a situation or problem, focusing on the main, broad aspects rather than small details.

Path-Goal Theory

A theory of leadership that focuses on how leaders can motivate subordinates to achieve their goals and improve their own performance by selecting specific behaviors tailored to their needs.