Two Goods Are Substitutes When a Decrease in the Price

question 166

Multiple Choice

Two goods are substitutes when a decrease in the price of one good

• A)decreases the demand for the other good.
• B)decreases the quantity demanded of the other good.
• C)increases the demand for the other good.
• D)increases the quantity demanded of the other good.

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Definitions:

State Supreme Court

The highest judicial court in a U.S. state, responsible for interpreting state laws and constitutions.

Illegal

Actions or activities that are prohibited by law and subject to sanctions.

Option Contract

A legal agreement in which a buyer has the right but not the obligation to buy or sell an asset at a pre-agreed price within a specified period.

Promissory Estoppel

A legal doctrine prohibiting someone from revoking a guarantee given to another individual if the latter has sensibly counted on such guarantee to their disadvantage.