A Firm Produces and Sells Two Goods, a and B

question 125

Multiple Choice

A firm produces and sells two goods, A and B. Good A is known to have many close substitutes; good B makes up a significant portion of most families' budgets. A price increase for each good would most likely cause total revenues from good A to

• A) increase and total revenues from good B to decrease
• B) increase and total revenues from good B to increase.
• C) decrease and total revenues from good B to increase.
• D) decrease and total revenues from good B to decrease.

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Definitions:

Emergencies

Situations that arise unexpectedly requiring immediate action, often to prevent harm or damage.

Older People

Individuals who are advanced in age, often considered to be those who are 65 years old or older, facing various physiological and social changes.

Elderly Childless

Older adults who do not have children, which may impact their social support network and considerations for care in later life.

Institutionalized

The process by which individuals are deeply immersed and acclimated into an organized system or structure, such as a prison, hospital, or long-term care facility.