Suppose People Buy More of Good 1 When the Price

question 426

Multiple Choice

Suppose people buy more of good 1 when the price of good 2 falls. These goods are

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

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Definitions:

Tax Per Unit

A tax imposed on each unit of a good or service produced or sold, often used by governments to generate revenue or discourage consumption.

Tax

A mandatory monetary contribution or different kinds of charges laid on a taxpayer by government institutions to support government expenses and diverse public costs.

Buyers Pay

The amount of money that purchasers spend to acquire goods or services.

Price

The quantity of money considered, needed, or paid in exchange for something.