If Two Goods Are Substitute Goods

question 133

Multiple Choice

If two goods are substitute goods,

• A)an increase in the price of one will cause a decrease in the demand for the other.
• B)an increase in the price of one will cause an increase in the demand for the other.
• C)the price elasticity of demand for both goods will be greater than 1.
• D)the price elasticity of demand for both goods will be less than 1.

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Definitions:

Legal Limits

The boundaries established by law, beyond which actions are deemed illegal or unauthorized.

Thoreau

Henry David Thoreau, an American essayist, poet, and philosopher known for his writings on natural history and philosophy, including "Walden."

Declare Laws

The act of formally stating or enacting legal rules and regulations by a governing body or authority.

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Something that contradicts or violates the principles and rules set forth in a country's constitution.