Whenever the Price of Good a Decreases, the Demand for Good

question 29

Multiple Choice

Whenever the price of Good A decreases, the demand for Good B increases.Good A and B appear to be:

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

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Definitions:

Money

A medium of exchange that is authorized or adopted by a government as part of its currency.

Futures Contract

A binding contract that stipulates the buying or selling of a certain financial instrument or commodity at a price fixed in advance, with the transaction to be executed at a predetermined future time.

Forward Contract

A personalized deal between two parties to exchange an asset at a set price on an agreed future date.

Settlement Date

The date on which a trade or transaction must be finalized, with the buyer delivering payment and the seller delivering the asset.