Suppose That a Consumer's Preferences Are Well Behaved in That

question 65

Multiple Choice

Suppose that a consumer's preferences are well behaved in that properties 4-1 - 4-4 are satisfied and the initial equilibrium consumption bundle consists of 100 units of X and 50 units of Y.If P_X increases such that the new equilibrium consumption bundle is 150 units of X and 75 units of Y, then goods X and Y are

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

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Definitions:

Negotiation

A process in which parties attempt to settle their dispute voluntarily, with or without attorneys to represent them.

Settlement Agreement

An out-of-court resolution to a legal dispute, agreed to by the parties in writing. A settlement agreement may be reached at any time prior to or during a trial.

Mediator

A neutral third party who facilitates negotiations between disputing parties with the aim of reaching a mutually acceptable agreement.

Points of Agreement

Specific terms or conditions within negotiations or discussions that all parties involved accept or approve.