There Is an Increase in the Demand for Cream When

question 276

Multiple Choice

There is an increase in the demand for cream when the price of coffee falls. Other things constant, we can conclude that coffee and cream are

• A)substitute goods.
• B)inferior goods.
• C)independent goods.
• D)complementary goods.

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Definitions:

Total Income

The combined earnings from wages, investments, and other sources before any deductions are made.

Wages & Salaries

Payments made to employees for their labor or services, typically on an hourly or annual basis.

Interest Rates

The cost of borrowing money or the compensation for the service and risk of lending money, typically expressed as a percentage of the principal.

Present Consumption

The use of goods and services for satisfaction or needs in the current period, as opposed to saving for future consumption.