Question 18 The change in the quantity demanded of any good is always caused by: A. A change in consumers' preferences for that good. B. A change in the general income levels of the consumers who buy that good. C. An increase or decrease in the population. D. A change in the price of that good. E. A change in the price of substitute goods. Answer Question 19 If the demand for product R decreases as the price of product S increases, then ____. A. Consumer preferences for S have increased B. R and S are not related goods C. R and S are substitutes D. R and S are complements Answer Question 20 In economics, the term investment refers to: A. The cost of employing human capital. B. Business spending for acquiring capital goods. C. Expenditure on expense accounts of employees. D. Firms' expenditure on salaries and rent. Answer
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If the demand for product R decreases as the price of product S increases, it means that R and S are substitutes. This is because as the price of S increases, consumers are likely to switch to the cheaper alternative, which is R. Show more…
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