If Your Purchases of Shoes Decrease from 11 Pairs Per

question 125

Multiple Choice

If your purchases of shoes decrease from 11 pairs per year to 9 pairs per year when the price of shirts increases from $8 to $12, for you, shoes and shirts are considered:

• A) inferior goods.
• B) luxury goods.
• C) substitute goods.
• D) complementary goods.

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Definitions:

Infrastructure

The basic physical and organizational structures and facilities (e.g., buildings, roads, power supplies) needed for the operation of a society or enterprise.

Trialability

Refers to the degree to which an innovation can be experimented with on a limited basis before its full-scale adoption.

Free Samples

Products given to consumers free of charge to introduce new offerings and encourage trial and purchase.

Disruptive Technology

An innovation that significantly alters the way that industries operate, often displacing established products.