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:

Reinforcement

In psychology, a process of encouraging or establishing a pattern of behavior by offering rewards or punishing unwanted behavior.

Punishment

The imposition of a penalty as a response to an undesired behavior, intended to discourage future occurrences of such behavior.

Negative Consequences

Results of a behavior that a person finds unattractive or aversive.

360-degree Feedbacks

A performance appraisal method that collects feedback from all directions: supervisors, peers, subordinates, and sometimes external sources like customers.