Those Products Whose Demand Curves Are Positively Related, Such That

question 13

Multiple Choice

Those products whose demand curves are positively related, such that they rise or fall together, are called:

• A)substitute products.
• B)complementary products.
• C)inverse products.
• D)convenience products.
• E)prestige products.

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource.

Average Product

Output per unit of a particular input.

Perfect Competitor

An idealized firm that has no market power and operates in a market with many buyers and sellers where all have perfect information.

Income Effect

It refers to the change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.