If Two Goods Are Substitutes in Consumption, A(n)

question 164

Multiple Choice

If two goods are substitutes in consumption, a(n) :

• A) decrease in the price of one product will cause an increase in the demand for the other product.
• B) decrease in the price of one product will cause a decrease in the demand for the other product.
• C) increase in the price of one product will cause an increase in the supply of the other product.
• D) increase in the price of one product will cause a decrease in the supply of the other product.
• E) increase in the price of one product will cause a decrease in the demand for the other product.

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Definitions:

Preferred Trading Range

The price range within which a security is considered attractive for purchase or sale by investors based on historical price movements and other factors.

Stock Splits

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of the company does not change.

Market Price

The present cost at which services or assets are offered for trade in the market.

Extra Dividend

A one-time payment made by a company to its shareholders, in addition to any regular dividends.