If Pepsi Goes on Sale and Decreases Its Price by 10

question 73

Multiple Choice

If Pepsi goes on sale and decreases its price by 10 percent,and as a result,the quantity demanded of Coca Cola decreases by 5 percent,then Pepsi and Coke are ________ goods.

• A) inferior
• B) normal
• C) substitute
• D) complementary
• E) unrelated

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Definitions:

Growing Trade

An increase in the exchange of goods and services between countries, contributing to economic development and globalization.

Fastest Growing

A term often used to describe entities or economies that increase in size, value, or importance at a very rapid pace.

Trade Deficit

A condition where a nation's expenditures on imports surpass its earnings from exports, leading to a deficit in the trade balance.

Merchandise Trade Deficit

The situation that occurs when a country imports more goods than it exports, leading to a negative balance of trade.