A and B Are Substitute Goods, but a and C

question 96

Multiple Choice

A and B are substitute goods, but A and C are complementary goods. If the cost of producing A decreases, then the demand for

• A) both B and C will decrease.
• B) both B and C will increase.
• C) B will increase and the demand for C will decrease.
• D) B will decrease and the demand for C will increase.

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Definitions:

Two-sided

Pertaining to hypothesis testing, where the alternative hypothesis is not directional and considers both possibilities of the effect being greater than or less than the null hypothesis.

Null Hypothesis

A statement in hypothesis testing that presumes no significant difference or effect, serving as the default until evidence suggests otherwise.

Population Parameter

A value that accurately represents a particular characteristic of an entire population.

Alternative Hypothesis

A statistical hypothesis that contradicts the null hypothesis, indicating the presence of an effect, difference, or relationship.