The Price of Good X Increases by 25 Percent,causing the Quantity

question 98

Multiple Choice

The price of Good X increases by 25 percent,causing the quantity consumed of Good Y to decrease by 10 percent.If everything else is held constant in the economy,we can say with certainty that Good X and Good Y are

• A) substitutes.
• B) inferior.
• C) complements.
• D) normal.
• E) unrelated.

---

Definitions:

NWC to Total Assets

A financial ratio that measures the net working capital (current assets minus current liabilities) in relation to the total assets of a company.

Interval Measure

A type of data measurement that includes order and a fixed measurement scale, allowing for the calculation of meaningful differences between data points.

Interval Measure

A statistical measure used to estimate the uncertainty of a data set by defining a range within which the values of the data set likely fall.

Short-term Solvency

The ability of a company to meet its short-term financial liabilities and obligations.