Two goods are substitutes when
A) an increase in the price of one reduces the demand for the other.
B) an increase in the price of one raises the demand for the other.
C) the two goods are used together.
D) the two goods have the same price.
Answer: B
Economics
You might also like to view...
Use the following saving schedule to answer the next question. 
Dissaving occurs when disposable income is
A. equal to level 2. B. less than level 2. C. equal to level 3. D. greater than level 2.
Economics
Suppose the production function faced by the firm is Q = A1/3 B1/3.If the firm increases the use of both inputs by 1 percent, output will increase by
A. 2 percent. B. 0 percent. C. more than 10 percent. D. less than 1 percent.
Economics