The Price of Good X Increases by 25%,causing the Quantity

question 95

Multiple Choice

The price of good X increases by 25%,causing the quantity consumed of good Y to decrease by 10%.If everything else is held constant in the economy,we can say with certainty that good X and good Y are:

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

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Definitions:

Pollution Reduction

Measures and strategies adopted to decrease the amount of pollutants released into the environment.

Pollution Permits

Licenses that allow the holder to emit a certain amount of pollution over a set time frame. They are used as part of regulatory systems to control and reduce overall pollution.

Environmental Economics

A branch of economics that studies the economic impact of environmental policies and the cost-benefit analysis of environmental changes.

Externalities

Financial implications or outcomes that impact parties not directly involved, which can either be beneficial or detrimental.