If an Increase in Quantity Demanded of a Product Reduces

question 49

True/False

If an increase in quantity demanded of a product reduces the quantity demanded of another, then the two goods are said to be substitutes.

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Definitions:

Total Income

The sum of all earnings and revenues received by an individual or business, including wages, salaries, investment income, and revenue from sales or services.

Total Taxes

The aggregate amount of taxes paid by an individual, corporation, or other entity to governmental authorities within a specified period.

Payroll Tax

Taxes imposed on employers and/or employees, usually calculated as a percentage of the salaries that employers pay their staff.

Capital Intensive Techniques

Production processes that require a high investment in capital assets relative to labor.