If Bagels and Croissants Are Substitute Goods, Which of the Following

question 208

Multiple Choice

If bagels and croissants are substitute goods, which of the following is likely to occur if the price of bagels has decreased?

• A) The demand curve for bagels shifts to the right.
• B) A leftward movement along the bagel demand curve.
• C) The demand curve for croissants shifts to the right.
• D) The demand curve for croissants shifts to the left.

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Definitions:

Hypothesis Testing

A method in statistics used to determine whether there is enough evidence in a sample of data to infer that a certain condition holds for the entire population.

Template Matching

A process in cognitive psychology where a perceived item or stimulus is compared to stored templates or patterns in the mind to recognize and identify it.

Personal Construct Theory

A psychological theory proposing that individuals organize their experiences into a system of personal constructs, which are used to interpret and predict events.

Constructs

Constructs are abstract concepts developed for use in a particular scientific or philosophical context to understand and describe the phenomena of interest.