Suppose the demand for books goes down when the price of video games goes down. We can say that these two goods are

A. substitutes.
B. complements.
C. unrelated goods.
D. perfect substitutes.


Answer: A

Economics

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If the interest rate on Japanese yen assets falls while interest rates in the United States remain constant, the

A) quantity of dollars demanded will increase. B) quantity of dollars demanded will decrease. C) demand for dollars will increase. D) demand for dollars will decrease.

Economics

The decline in output at the onset of the Great Depression was caused primarily by

a. a positive demand shock b. a negative demand shock c. a positive supply shock d. a negative supply shock e. simultaneous shocks to supply and demand

Economics

The labor productivity speed-up in the United States could be explained by a delayed

a. educational benefit. b. technology benefit. c. military spending benefit. d. baby boom benefit.

Economics

Over the past century, the growth rate of real GDP in the United States has averaged approximately

a. 1 percent. b. 3 percent. c. 6 percent. d. 10 percent.

Economics