A Decrease in the Price of Spaghetti Noodles Is Likely

question 65

Multiple Choice

A decrease in the price of spaghetti noodles is likely to cause:

• A) an increase in the demand for penne pasta due to a change in the price of a complementary good.
• B) an increase in the demand for penne pasta due to a change in the price of a substitute good.
• C) a decrease in the demand for penne pasta due to a change in the price of a complementary good.
• D) a decrease in the demand for penne pasta due to a change in the price of a substitute good.

---

Definitions:

Bilateral Contract

A type of agreement in which both parties involved promise to perform certain actions or obligations.

Consideration

A legal concept referring to something of value exchanged between parties in a contract, making the agreement binding and enforceable.

Unforeseen Circumstances

Events that could not have been predicted or expected and may impact contractual agreements or obligations.

Preexisting Duty Rule

A legal principle that asserts no additional consideration is necessary to modify a contract when a party is already legally obligated to perform a duty.