Two Goods Are Substitutes When

question 401

Multiple Choice

Two goods are substitutes when

• A) an increase in the price of one reduces the demand for the other.
• B) an increase in the price of one raises the demand for the other.
• C) the two goods are used together.
• D) the two goods have the same price.

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Definitions:

Fallacy

An erroneous argument or reasoning, often misleading or based on unsound logic.

Ad Hominem

A logical fallacy where an argument is rebutted by attacking the character, motive, or other attribute of the person making the argument rather than addressing the substance of the argument itself.

Gambling

Wagering money or something of value on an outcome that is largely determined by chance.

Idiot

Used historically in psychology to describe a person with profound intellectual disability, the term is now considered derogatory and outdated.