If There Are Only Two Goods, an Increase in the Price

question 27

Multiple Choice

If there are only two goods, an increase in the price of good 1 will increase the demand for good 2

• A)if and only if the price elasticity of demand for good 2 is greater than 1 in absolute value.
• B)whenever both goods are normal goods.
• C)only if the two goods are perfect substitutes.
• D)never.
• E)none of the above.

Understand the legislation that encourages ethical behavior in organizations.

Recognize the importance of whistleblowing in maintaining ethical standards.

Comprehend different aspects and considerations in corporate social responsibility.

Identify legal protections against discrimination and harassment in the workplace.

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Definitions:

Unit Selling Price

The amount of money charged to a customer for a single unit of a product or service.

Unit Variable Costs

Costs that vary directly with the production volume, such as materials and labor, on a per-unit basis.

Contribution Margin Ratio

A financial metric that shows how much of a company's revenue is available after variable costs to cover fixed costs and generate profit.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, showing how much each unit contributes to covering fixed costs and generating profit.