There Are Two Universities,A and B,in a City

question 87

Multiple Choice

There are two universities,A and B,in a city.Tuition rises at University A and,as a result,the demand for attending University B rises.It follows that educational services at the two universities are

• A) complements.
• B) normal goods.
• C) inferior goods.
• D) substitutes.
• E) none of the above

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Definitions:

Present Value

The value today of a future amount of money or series of payments, adjusted for a specific return rate.

Discounted

The process of determining the present value of a payment or stream of payments that will be received in the future.

Present Value

The current value of a future amount of money or stream of cash flows, given a specified rate of return.

Rate Of Return

The increase or decrease in value of an investment within a set timeframe, represented as a percentage of the investment's starting price.