The Price of Coffee Increases by 10%,and as a Result,Alex

question 110

Multiple Choice

The price of coffee increases by 10%,and as a result,Alex purchases fewer doughnuts.For Alex,coffee and doughnuts are:

• A)complements.
• B)substitutes.
• C)inferior goods.
• D)normal goods.

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Definitions:

Low-Wage Countries

Nations with a general level of income that is much lower than the global average, often associated with high levels of poverty.

Neoclassical Economists

Economists who follow the neoclassical school of thought, focusing on supply and demand as drivers of price, output, and allocation of resources in markets.

Free Markets

Economic systems in which prices for goods and services are determined by the open market and by consumers, with minimal governmental intervention or regulation.

Global Economy

The international network of economies and markets, interconnected and influenced by global trade, investment, and information technology.