If the Price of Chocolate-Covered Peanuts Increases and the Demand

question 82

Multiple Choice

If the price of chocolate-covered peanuts increases and the demand for strawberry licorice twists increases, this indicates that these two goods are:

• A) unrelated goods.
• B) superior goods.
• C) inferior goods.
• D) substitute goods.

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Definitions:

Production Possibilities

The different mixes of products and services that a country can generate considering its accessible resources and current technology.

Total Output

The complete quantity of goods or services produced by a firm, industry, or economy within a specified period.

World-Market Price

The internationally agreed-upon price of a commodity, product, or service, influenced by global supply and demand.

International Trade

The trading of goods and services across national borders.