If the Demand for Olives Falls When the Price of Cheese

question 173

Multiple Choice

If the demand for olives falls when the price of cheese falls, then we know that cheese and olives are:

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

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Definitions:

Mining Town

A community developed to house miners and is located near mining operations.

Effective Rate

The total calculated interest on a loan or investment annually, including compounding, differing from the nominal interest rate.

Effective Annualized Rate

The interest rate that is annualized using compounding over a given period, providing a true reflection of the financial cost.

Simple Interest

Interest calculated on the principal portion of a loan or deposit, without compounding over time.