If a Rise in the Price of Good B Increases

question 132

Multiple Choice

If a rise in the price of good B increases the demand for good A, then

• A)A and B are substitutes.
• B)A and B are complements.
• C)the cross elasticity of demand between A and B is negative.
• D)A is a resource used in the production of B.
• E)the demand for A is price elastic.

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Definitions:

Cognitive Conflict

A situation arising from the encounter of differing viewpoints or information, leading to a reevaluation of existing beliefs or knowledge.

Equilibration

The process in cognitive development described by Piaget where children balance assimilation and accommodation to create stable understanding.

Disequilibrium

Disequilibrium refers to a state of imbalance or lack of equilibrium, often used in contexts ranging from physical stability to economic conditions.

Accommodation

In cognitive development, the process of altering one's existing schemas or ways of thinking in response to new information.