If Goods X and Y Are Substitute Goods,then a Decrease

question 135

Multiple Choice

If goods X and Y are substitute goods,then a decrease in the price of Y,other things constant,

• A)has no real effect on the quantity demanded of good Y,but increases the demand for X.
• B)results in an increase in the quantity of Y demanded and a decrease in the demand for X.
• C)results in a decrease in the amounts of both X and Y demanded.
• D)increases the quantity of Y demanded,but has no effect on the amount of X demanded.

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Definitions:

Sale Price

Sale price refers to the final price at which a product or service is sold after any discounts or promotions are applied.

Interest Rate Swaps

Financial derivatives in which two parties exchange interest rate obligations on debt, often switching between fixed and variable rates.

Buyer

A person or organization that purchases products or services by paying for them.

Seller

A party that offers goods or services for sale.