If the demand for gadgets increases as a result of a decrease in the price of widgets, the widgets and gadgets are:

A. elastically demanded.
B. substitute goods.
C. normal goods.
D. complementary goods.

Answer: D

Economics

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Suppose a country has a real interest rate of 4 percent and an inflation rate of 3 percent. If the income tax rate is 20 percent, then the after-tax real interest rate is

A) 2.6 percent. B) 7.0 percent. C) 5.6 percent. D) 4.0 percent. E) 1.4 percent.

Economics

A vertical supply curve exhibits

A) a constant elasticity of supply. B) a perfectly inelastic supply curve. C) Both A and B are true. D) None of the above.

Economics