If Two Goods Are Substitutes, Then

question 286

Multiple Choice

If two goods are substitutes, then

• A) an increase in the price of one causes the demand for the other to fall.
• B) there is an inverse relationship between changes in the price of one good and changes in the demand for the other.
• C) if the price of one good falls, the demand for the other good falls also.
• D) changes in the quantity demanded of one good will not affect the demand for the other.

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Definitions:

Percent

A way of expressing a number as a fraction of 100, representing a part of a whole.

Normal Model

A statistical model describing data distribution that is symmetric, bell-shaped, and characterized by mean and standard deviation.

Mathematics Test

An examination or assessment intended to measure a person's knowledge, skills, or abilities in mathematics.

Normal Model

A statistical model where the data follow a bell-shaped distribution, with most of the observations clustering around the center mean.