When Two Goods Are Complementary Goods,as the Price of One

question 141

Multiple Choice

When two goods are complementary goods,as the price of one of the goods goes _____,the quantity demanded of the other goes _____.

• A)down;down
• B)up;up
• C)up;down
• D)down;neither up nor down

---

Definitions:

Wage Rate

The amount of money paid to an employee per unit of time, often per hour or day.

Utility Function

A mathematical representation in economics that captures an individual's preference ranking for different bundles of goods or outcomes.

Nonlabor Income

Income received from sources other than employment, such as investments, pensions, or inheritances.

Wage Rate

The fixed or variable payment earned by employees for their work or services, typically documented on an hourly, daily, or piecework basis.