Two Goods Are Considered Substitutes Only If

question 102

Multiple Choice

Two goods are considered substitutes only if

• A) a decrease in the demand for one leads to a decrease in the supply of the other
• B) an increase in the demand for one leads to a decrease in the supply of the other
• C) an increase in the price of one leads to an increase in the demand for the other
• D) a decrease in the price of one leads to an increase in the demand for the other
• E) a decrease in the supply of one leads producers to switch to production of the other

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Definitions:

Depersonalisation

The perception and treatment of self and others not as unique individual persons but as prototypical embodiments of a social group.

Ingroup Prototype

The most representative or ideal example of the characteristics and behaviors of an ingroup, serving as a standard or model for group members.

Outgroup Prototype

refers to the generalized, often simplified, perceptions or stereotypes that individuals hold about members of a group to which they do not belong.

Relative Homogeneity Effect

A perception bias where individuals see out-group members as more similar to each other than in-group members, often leading to stereotyping.