If the Demand for Computer Software Rises as Incomes Rise,then

question 194

Multiple Choice

If the demand for computer software rises as incomes rise,then computer software is a (an)

• A) inferior good
• B) substitute (good)for computers
• C) normal good
• D) complement (good)for computers
• E) c and d

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Definitions:

Protective Put

An options strategy where an investor purchases a put option for an existing stock position to limit potential losses.

Listed Put Option

A put option that is traded on an official exchange, giving the holder the right but not the obligation to sell a specific asset at a set price before the option expires.

Exercise Price

The price at which the holder of an options contract can buy or sell the underlying asset.

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which in turn diminishes its price.