Suppose That Tacos and Pizza Are Substitutes, and That Soda

question 64

Multiple Choice

Suppose that tacos and pizza are substitutes, and that soda and pizza are complements. We would expect an increase in the price of pizza to

• A) reduce the demand for tacos and increase the demand for soda.
• B) reduce the demand for soda and increase the demand for tacos.
• C) increase the demand for both soda and tacos.
• D) reduce the demand for both soda and tacos.

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Definitions:

Living Trust

A legal document that places assets into a trust for the grantor's benefit during their lifetime and specifies how to distribute remaining assets after the grantor's death.

Resulting Trust

A trust formed by implication of law when property is transferred under circumstances suggesting the transferor does not intend the transferee to have beneficial interest in the property.

Revocable Living Trust

A legal document that allows an individual to control their assets during their lifetime and specify how these assets are distributed upon their death. It can be altered or revoked.

Constructive Trust

An equitable remedy imposed by a court to rectify situations where injustice would otherwise occur due to wrongful possession of property.