If a Decrease in Price of Good X Causes the Demand

question 77

Multiple Choice

If a decrease in price of good X causes the demand curve for good Y to increase, then these two goods are:

• A) normal goods.
• B) complementary goods.
• C) substitute goods.
• D) equilibrium goods.
• E) market-day goods.

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Definitions:

Payroll Tax

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

Unemployment Rate

The proportion of the workforce that is unemployed and actively seeking work.

Corporations

Legal entities that are separate and distinct from their owners, created to conduct business, can enter into contracts, loan and borrow money, sue and be sued.

Normative Economic Statement

An opinion or value judgment about what ought to be, rather than what is measurable or empirically observable.