If Two Goods Are Substitutes,then

question 116

Multiple Choice

If two goods are substitutes,then

• A) an increase in the demand for one of them will lead to an increase in demand for the other
• B) an increase in the demand for one of them will lead to a decrease in demand for the other
• C) an increase in the supply of one of them will lead to an increase in supply of the other
• D) an increase in the supply of one of them will lead to a decrease in supply for the other
• E) they cannot be produced at the same time

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Definitions:

Productivity

The efficiency at which goods or services are produced, often measured by the output per worker or per hour worked.

Output Per Acre

A measure of agricultural productivity, calculated as the total production of a crop divided by the number of acres used to grow that crop.

MRP Curve

The Marginal Revenue Product curve reflects the added revenue generated by one additional unit of input in the production process.

Labor

The exertion of mental and physical capabilities by individuals in creating goods and services.