Two goods, X and Y, are called substitutes if

a. an increase in PX causes more Y to be bought.
b. an increase in PX causes less Y to be bought.
c. an increase in PY causes less Y to be bought.
d. an increase in income causes more of both X and Y to be bought.

a

Economics

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Victor currently produces nuts and bolts at point a in the figure. Victor's marginal cost of producing an additional nut is ________

A) 1 bolt per nut B) 1/2 bolt per nut C) 8/6 bolts per nut D) 8 bolts per nut

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A falling natural-employment deficit indicates that

A) the growth rate in the economy has increased. B) the government is following a restrictive fiscal policy. C) the government is following an expansionary fiscal policy. D) the actual surplus is rising.

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