Related to the Economics in Practice on P

question 19

Multiple Choice

Related to the Economics in Practice on p.55: The Amazon Kindle and the electronic textbooks available for the Kindle are complementary goods.Electronic textbooks and traditional,hard copy textbooks are substitute products.If the price of traditional,hard copy textbooks increases,

• A)demand for traditional,hard copy textbooks decreases and demand for electronic textbooks increases.
• B)the quantity of traditional,hard copy textbooks demanded decreases and demand for electronic textbooks increases.
• C)the quantity of electronic textbooks demanded increases and demand for the Kindle increases.
• D)the quantity of electronic textbooks demanded increases and demand for traditional,hard copy textbooks decreases.

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Definitions:

Certified Check

A check for which the issuing bank guarantees the availability of funds by verifying the drawer's signature and setting aside the check amount, thus ensuring payment.

Bankrupt

A legal status of a person or entity that cannot repay debts to creditors and has sought relief through bankruptcy proceedings.

Postdated Check

A check written with a date in the future, preventing the check from being deposited or cashed until that date.

Properly Payable

Refers to checks or drafts that meet all criteria for payment by the bank on which they are drawn, in accordance with the account holder's instructions and the bank's agreement with the customer.