The Demand for a Good Increases When the Price of a Substitute

question 412

Multiple Choice

The demand for a good increases when the price of a substitute ________ and also increases when the price of a complement ________.

• A) rises; rises
• B) rises; falls
• C) falls; rises
• D) falls; falls

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Definitions:

Implicit Favorite

An unspoken preference or bias towards a particular option or choice in decision-making processes.

Escalation of Commitment

A psychological process whereby an individual continues to support a failing course of action due to cognitive biases, loss aversion, and sunk costs.

Decision-making Skills

The ability to evaluate information, consider alternatives, and choose the most appropriate course of action.

Subordinates

Employees or team members who report directly to a manager or leader within the organizational hierarchy.