Suppose People Buy More of Good 1 When the Price

question 78

Multiple Choice

Suppose people buy more of good 1 when the price of good 2 falls. These goods are

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

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Definitions:

Thermodynamics

The branch of physics that deals with the relationships and conversions between heat and other forms of energy.

Second Law

An ambiguous term that may refer to the second law of thermodynamics, which states that the entropy of an isolated system not in equilibrium almost always increases.

Thermodynamics

The branch of physics that deals with the relationships between heat and other forms of energy, and how they affect matter.

Potential Energy

The energy possessed by a body by virtue of its position relative to others, stresses within itself, electric charge, and other factors.