If Two Goods Are Close Substitutes

question 196

Multiple Choice

If two goods are close substitutes:

• A)consumers will always buy the one that has the highest price.
• B)a fall in the price of one will decrease the demand for the other.
• C)an increase in the price of one causes the demand for the other to decrease.
• D)a decrease in the price of one causes an increase in the demand for the other.

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Definitions:

Memory Retrieval

The process of recalling or recognizing information stored in memory, an essential component of the memory process.

Proactive Interference

The phenomenon where older memories interfere with the recall of newer memories.

Forward-Acting

Describes actions or decisions that are intended to have positive impacts or benefits in the future, often involving proactive thinking and planning.

Proactive Interference

A phenomenon where older memories interfere with the recall of newer memories.