Two Goods Are Substitutes When

question 401

Multiple Choice

Two goods are substitutes when

• A) an increase in the price of one reduces the demand for the other.
• B) an increase in the price of one raises the demand for the other.
• C) the two goods are used together.
• D) the two goods have the same price.

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Definitions:

Tolman

Edwin C. Tolman was an American psychologist who made significant contributions to the study of learning and motivation in what came to be known as cognitive maps.

Demand

The desire or need for products, services, or resources combined with the ability and willingness to pay for them.

Food Deprivation

A condition resulting from lack of food intake, leading to physical and psychological effects and often used in experiments to motivate behaviors in animals.

Eyeblink Response

A reflex action where the eyelids close rapidly to protect the eyes, typically triggered by sudden stimuli.