If the Demand for Used Cars Decreases After the Price

question 96

Multiple Choice

If the demand for used cars decreases after the price of a new car falls,used cars and new cars are

• A) inferior goods.
• B) substitute goods.
• C) complementary goods.
• D) normal goods.
• E) The questions errs because it is the quantity of used cars, NOT the demand for used cars, that will change when the price of a new car falls.

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Definitions:

Power Differentials

The varying levels of influence or control between individuals or groups within a given context, often affecting interactions and outcomes.

Avoid Communicating

The deliberate act of withholding information or not engaging in the exchange of ideas and feedback.

Psychological Safety

A workplace environment where individuals feel safe to take risks, voice their opinions, and express their thoughts without fear of negative consequences.

Positive Climate

An organizational environment characterized by support, appreciation, and mutual respect among members, which enhances overall morale and productivity.