If Goods Are Perfect Substitutes,what Is the Income Effect of a Price

question 143

Multiple Choice

If goods are perfect substitutes,what is the income effect of a price change on the other good

• A)positive only
• B)zero only
• C)negative only
• D)zero or positive

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Definitions:

Oral Evidence

Testimony given by a witness in court or during a legal proceeding that is spoken and not written.

Written Contract

A legally binding agreement between two or more parties that is put in writing and signed by the parties.

Statute of Frauds

A legal doctrine that requires certain types of contracts to be in writing and signed by the party to be charged, in order to be legally enforceable.

Land Leases

Agreements in which landowners allow tenants to use their land for a specified period and conditions, without transferring ownership.