{"id":43745,"date":"2024-04-15T21:33:50","date_gmt":"2024-04-15T21:33:50","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=43745"},"modified":"2024-04-15T21:33:50","modified_gmt":"2024-04-15T21:33:50","slug":"good-y-is-the-substitute-for-good-x-if-1-a-fall-in-the-price-of-good-x-leads-to-the-fall-in-the-marginal-utility-of-good-y-2-a-fall-in-the-price-of-good-x-leads-to-the-fall-in-the-quantity","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/good-y-is-the-substitute-for-good-x-if-1-a-fall-in-the-price-of-good-x-leads-to-the-fall-in-the-marginal-utility-of-good-y-2-a-fall-in-the-price-of-good-x-leads-to-the-fall-in-the-quantity\/","title":{"rendered":"Good &#8216;Y&#8217; is the substitute for good &#8216;X&#8217; if 1. A fall in the price of good X leads to the fall in the marginal utility of good Y. 2. A fall in the price of good X leads to the fall in the quantity purchased of good Y. Select the correct answer"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Only 1&#8243; option2=&#8221;Only 2&#8243; option3=&#8221;Both 1 and 2&#8243; option4=&#8221;Neither 1 nor 2&#8243; correct=&#8221;option2&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>Neither 1 nor 2<\/strong><\/p>\n<p>Goods are substitutes if they can be used in place of each other to satisfy the same need. For example, coffee and tea are substitutes, as they can both be used to satisfy the need for a hot beverage.<\/p>\n<p>If the price of good X falls, then consumers will tend to buy more of good X. This is because good X is now relatively cheaper than it was before, so consumers will have more incentive to buy it. If good Y is a substitute for good X, then this means that consumers will also tend to buy less of good Y. This is because good Y is now relatively more expensive than it was before, so consumers will have less incentive to buy it.<\/p>\n<p>However, a fall in the price of good X does not necessarily lead to a fall in the marginal utility of good Y. The marginal utility of a good is the additional satisfaction that a consumer gets from consuming one more unit of that good. The marginal utility of a good can fall for a number of reasons, including a decrease in the consumer&#8217;s income, an increase in the price of the good, or a decrease in the consumer&#8217;s taste for the good.<\/p>\n<p>Therefore, the correct answer is: <strong>Neither 1 nor 2<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Only 1&#8243; option2=&#8221;Only 2&#8243; option3=&#8221;Both 1 and 2&#8243; option4=&#8221;Neither 1 nor 2&#8243; correct=&#8221;option2&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-43745","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Good &#039;Y&#039; is the substitute for good &#039;X&#039; if 1. A fall in the price of good X leads to the fall in the marginal utility of good Y. 2. A fall in the price of good X leads to the fall in the quantity purchased of good Y. Select the correct answer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/good-y-is-the-substitute-for-good-x-if-1-a-fall-in-the-price-of-good-x-leads-to-the-fall-in-the-marginal-utility-of-good-y-2-a-fall-in-the-price-of-good-x-leads-to-the-fall-in-the-quantity\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Good &#039;Y&#039; is the substitute for good &#039;X&#039; if 1. A fall in the price of good X leads to the fall in the marginal utility of good Y. 2. A fall in the price of good X leads to the fall in the quantity purchased of good Y. Select the correct answer\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Only 1&#8243; option2=&#8221;Only 2&#8243; option3=&#8221;Both 1 and 2&#8243; option4=&#8221;Neither 1 nor 2&#8243; correct=&#8221;option2&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/good-y-is-the-substitute-for-good-x-if-1-a-fall-in-the-price-of-good-x-leads-to-the-fall-in-the-marginal-utility-of-good-y-2-a-fall-in-the-price-of-good-x-leads-to-the-fall-in-the-quantity\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T21:33:50+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Good 'Y' is the substitute for good 'X' if 1. A fall in the price of good X leads to the fall in the marginal utility of good Y. 2. A fall in the price of good X leads to the fall in the quantity purchased of good Y. Select the correct answer","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/good-y-is-the-substitute-for-good-x-if-1-a-fall-in-the-price-of-good-x-leads-to-the-fall-in-the-marginal-utility-of-good-y-2-a-fall-in-the-price-of-good-x-leads-to-the-fall-in-the-quantity\/","og_locale":"en_US","og_type":"article","og_title":"Good 'Y' is the substitute for good 'X' if 1. A fall in the price of good X leads to the fall in the marginal utility of good Y. 2. A fall in the price of good X leads to the fall in the quantity purchased of good Y. 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