There Are Two Universities, a and B, in a City

question 209

Multiple Choice

There are two universities, A and B, in a city. Tuition rises at University A and, as a result, the demand for attending University B rises. It follows that educational services at the two universities are

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

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Definitions:

Net Present Value

A calculation used to determine the value of a future stream of income or expenses discounted back to the present value.