If Two Goods Are Substitutes,then an Increase in the Price

question 45

Multiple Choice

If two goods are substitutes,then an increase in the price of one will cause

• A) A leftward shift of the demand curve for the other good
• B) A rightward shift of the demand curve for the other good
• C) A movement up and to the left along the demand curve for the other good
• D) A movement down and to the right along the demand curve for the other good

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Definitions:

True Values

The actual, inherent worth or significance of something, often in a context where this may not be initially apparent.

Selling Price

The amount of money for which a product or service is sold to the consumer.

First-Price Auction

An auction format in which the highest bidder wins the item and pays the price they bid.

True Values

The actual, inherent worth or validity of something, often contrasted with perceived or estimated values.