Two Goods,X and Y,are Called Substitutes If

question 21

Multiple Choice

Two goods,X and Y,are called substitutes if

• A)an increase in PX causes more Y to be bought.
• B)an increase in PX causes less Y to be bought.
• C)an increase in PY causes less Y to be bought.
• D)an increase in income causes more of both X and Y to be bought.

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Definitions:

Exchange Rate

The value at which one country's currency can be exchanged for another country's currency, influencing international trade and economic policies.

Canadian Dollar

The currency of Canada, represented by the symbol CAD.

Euro

The official currency of the eurozone, which consists of 19 of the 27 European Union member states.

Hong Kong Dollars

The currency of Hong Kong, denoted as HKD, which is used in financial transactions within the region.