Suppose That a Consumer's Preferences Are Well Behaved in That

question 113

Multiple Choice

Suppose that a consumer's preferences are well behaved in that properties 4-1 to 4-4 are satisfied and the initial equilibrium consumption bundle consists of 10 units of X and 25 units of Y.If P_Y increases such that the new equilibrium consumption bundle is 15 units of X and 10 units of Y,then goods X and Y are:

• A) complements.
• B) substitutes.
• C) normal goods.
• D) unrelated.

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Operating Expenses

Costs associated with a company's main operational activities, excluding the cost of goods sold.

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The total profit of a company after all expenses and taxes have been deducted from revenue, indicating the financial performance over a specific period.

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Businesses that primarily offer intangible products or services to consumers or other businesses.

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