If Products C and D Are Close Substitutes, an Increase

question 112

Multiple Choice

If products C and D are close substitutes, an increase in the price of C will

• A) tend to cause the price of D to fall.
• B) shift the demand curve for C to the left and the demand curve for D to the right.
• C) shift the demand curve for D to the right.
• D) shift the demand curves of both products to the right.

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Definitions:

Statute Of Frauds

A rule of law that mandates specific kinds of agreements must be documented and signed to have legal force.

Oral Agreement

A verbal contract between parties where terms are agreed upon through spoken communication rather than in writing.

UCC

The Uniform Commercial Code, a set of laws that provide legal rules and regulations governing commercial or business dealings and transactions in the United States.

Missing Price

A situation where the cost or value of an item is not listed or known.