An Increase in the Price of Product B Leads to an Increase

question 267

Multiple Choice

An increase in the price of product B leads to an increase in the demand for product C. This indicates that products B and C are

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

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Definitions:

Barter

An exchange method where goods and services are directly traded for other goods and services without using a medium of exchange, like money.

Deregulation

The process of removing or reducing state regulations, typically in the economic sphere, to encourage efficiency and competition.

Bank Failures

Bank failures occur when a bank is unable to meet its obligations to depositors or creditors and is placed under the control of a regulatory agency.

Risky Assets

Assets that carry a significant possibility of loss along with the potential for higher rewards.