If the Price of a One Good Increases and the Quantity

question 62

Multiple Choice

If the price of a one good increases and the quantity demanded of a different good decreases,then these two goods are

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

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Definitions:

Dividend Clientele Effect

A theory suggesting that investors prefer dividends at rates that match their own tax situation.