If a Decrease in the Price of Good Y Causes

question 35

Multiple Choice

If a decrease in the price of good Y causes the demand for good Z to decrease, this indicates that:

• A) Y and Z are complements.
• B) Y and Z are substitutes.
• C) Y and Z are unrelated.
• D) Y is a normal good and Z is an inferior good.

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Definitions:

European Union

A political and economic union of 27 European countries that are located primarily in Europe, aiming to ensure the free movement of people, goods, services, and capital.

GDP

Short for Gross Domestic Product, it measures the total economic output of a country within a specific time frame.

IMF

The International Monetary Fund, a global organization that provides financial support and advice to countries facing economic difficulties.

Market Supremacy

The dominance of a particular company or product in a specific market, often characterized by a large market share.