Suppose People Buy More of Good 1 When the Price

question 394

Multiple Choice

Suppose people buy more of good 1 when the price of good 2 falls. These goods are

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

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Definitions:

Clothing Price

The monetary value at which attire is offered for sale, influenced by factors such as brand, quality, fashion trends, and manufacturing costs.

Food Price

The cost assigned to food items, influenced by factors such as production costs, supply and demand, and market conditions.

Choice Set

The collection of all possible alternatives or options available to a decision-maker.

Price Decreases

A reduction in the cost at which goods and services are sold, typically influencing demand.