People Buy More of Good 1 When the Price of Good

question 126

Multiple Choice

People buy more of good 1 when the price of good 2 rises. These goods are

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

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Definitions:

Caveat Emptor

A Latin phrase meaning "let the buyer beware," which suggests that the buyer is responsible for checking the quality and suitability of goods before a purchase is made.

Legal Concept

Fundamental principles that are recognized and enforced by the legal system to regulate conduct.

American Business Culture

A set of norms, values, and practices that characterize the conduct of business in the United States, including communication styles, work ethics, and corporate governance.

Caveat Emptor

A legal principle meaning "let the buyer beware," indicating that the buyer assumes the risk about the quality and condition of the product.