An Increase in the Price of Good B Resulting from a Decrease

question 105

Multiple Choice

An increase in the price of good B resulting from a decrease in the supply of B caused an increase in the demand for good C.This indicates that goods B and C are

• A) complements.
• B) substitutes.
• C) neither substitutes nor complements.
• D) normal goods.

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Definitions:

Evolutionary Theory

A theory explaining the diversity of biological species through gradual processes of change and selection over generations.

Restorative Theory

A theory of sleep proposing that sleep serves to replenish and restore physiological processes that diminish during wakeful and active hours.

Psychoanalytic Theory

A theory of personality development, originated by Sigmund Freud, that emphasizes unconscious motives and conflicts.

Dream Theory

Various psychological theories that seek to explain the meaning, origins, and functions of dreams, including Freud's psychoanalytic theory of dreams as wish fulfillment.