If the Demand Curve for Product B Shifts to the Right

question 311

Multiple Choice

If the demand curve for product B shifts to the right as the price of product A declines, then

• A) both A and B are inferior goods.
• B) A is a superior good and B is an inferior good.
• C) A is an inferior good and B is a superior good.
• D) A and B are complementary goods.

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Definitions:

Essential Resource

A resource deemed vital for the survival of an organism, community, or operation, whose absence can lead to severe negative impacts.

Elastic Market Demand

Describes a market situation where the quantity demanded of a good or service significantly responds to changes in its price.

Perfectly Elastic Demand

Perfectly elastic demand is a market scenario where the demand for a product can drastically change (increase or decrease) at the slightest change in price, essentially to infinity.

Patents

Legal documents granted by the government giving an inventor exclusive rights to manufacture, use, or sell an invention for a certain number of years.