Two Goods,X and Y,are Called Complements If

question 7

Multiple Choice

Two goods,X and Y,are called complements 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:

Probability Distribution

A mathematical representation that specifies all the possible outcomes and their chances for a random variable within a defined boundary.

Risky Stock

Stocks with a high degree of risk, typically characterized by high volatility and potential for significant loss or gain.

Mean Distribution

A statistical term describing the central tendency of a probability distribution, often interpreted as the average of a set of values.

Portfolio Theory

A framework for constructing a portfolio of assets aimed at maximizing return for a given level of risk.