Suppose That a Decrease in the Price of X Results

question 62

Multiple Choice

Suppose that a decrease in the price of X results in less of good Y sold. This would mean that X and Y are:

• A) complementary goods
• B) substitute goods
• C) unrelated goods
• D) normal goods

---

Definitions:

Tariff

A tax imposed by a government on goods and services imported from other countries.

Comparative Advantage

The ability of an individual, firm, or country to produce a certain good or service at a lower opportunity cost than other producers.

International Trade

The exchange of goods, services, and capital between countries and territories, allowing for greater variety of consumption and efficiencies in production.

Productive

Refers to the ability of an individual, company, or economy to produce goods or services efficiently and effectively.