When Two Goods Are Related Such That an Increase in the Price

question 333

Multiple Choice

When two goods are related such that an increase in the price of one good decreases the quantity demanded of the other good,these goods are definitely

• A) normal goods.
• B) luxury goods.
• C) complements.
• D) substitutes.
• E) inferior goods.

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Definitions:

Annuity

An investment vehicle that provides a consistent series of disbursements to a person, often employed in retirement planning.

RRSP

A registered retirement savings plan, a tax-advantaged account designed to help Canadians save for retirement.

Compounded

The process by which interest is earned on both the initial principal and the interest that has been added to it, thus "compounding" the amount.

Monthly

Occurring or done once a month.