If Two Goods Are Substitutes, What Happens If There Is

question 59

Multiple Choice

If two goods are substitutes, what happens if there is a decrease in the price of one good?

• A) It increases the demand for the other good.
• B) It reduces the demand for the other good.
• C) It reduces the quantity demanded of the other good.
• D) It increases the quantity demanded of the other good.

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Definitions:

Personal Property

Movable assets or belongings, excluding real estate and buildings, owned by an individual or entity.

Third Parties

Individuals or entities that are not directly involved in a contract or negotiation but may be affected by its outcomes or have an interest in its terms.

Indispensable Paper

A critical document without which a particular process or task cannot be completed or understood.

Chattel Paper

A legal document that specifies an obligation involving movable personal property, often related to leases or loans.