When Dealing with the Demand for Inputs

question 21

Multiple Choice

When dealing with the demand for inputs

• A)substitution and output effects work in opposite directions for substitutes
• B)substitution and output effects always work in the same direction
• C)substitution output effects work in opposite directions for compliments
• D)substitution output effects work in opposite directions for inferior goods

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Definitions:

Equitable Mortgage

A mortgage subsequent to the first or legal mortgage. A mortgage of the mortgagor’s equity.

Covenant to Pay

An agreement in a contract where one party promises to pay a specified sum to another.

Original Mortgagor

is the initial borrower who takes out a mortgage loan secured by the property being mortgaged.

Hypothec

A legal term primarily used in civil law jurisdictions to describe a right or security interest granted over an asset to secure the repayment of a debt without transferring title.