If the Demand for Gadgets Increases as a Result of a Decrease

question 104

Multiple Choice

If the demand for gadgets increases as a result of a decrease in the price of widgets, the widgets and gadgets are:

• A)complementary goods.
• B)substitute goods.
• C)normal goods.
• D)elastically demanded.

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Definitions:

Board of Trustees

A group of individuals vested with the responsibility to manage and oversee the operations and affairs of an institution or organization.

Group Polarisation

The tendency for a group to make decisions that are more extreme than the initial inclination of its members, often after group discussions.

Conformity

The act of aligning one's beliefs, attitudes, and behaviors with those of a group or societal norms.

Lowball Technique

A persuasion strategy by which an offer is initially made attractive, but less favorable terms are introduced after commitment is obtained.