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Vendor: Pegasystems
Exam Code: PEGAPCBA84V1
Exam Name: Pega Certified Business Architect (PCBA) 84V1
Certification Provider: Pegasystems
Total Questions: 600 Q&A
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NEW QUESTION: 1
The local video store's business increased by 12 percent after the movie theater raised its prices from
$ 6.50 to $7.00. This is an example of:
A. Superior goods.
B. Complementary goods.
C. Independent goods.
D. Substitute goods.
Answer: D
Explanation:
Choice "a" is correct. For substitute goods, as the price of one good goes up, the demand for another,
substitute good increases as consumers desire the lower-priced substitute good.
Choice "b" is incorrect. Superior goods. Just as the demand for inferior goods declines with an increase in
the income level of a consumer, superior goods will experience a spurt in demand as prices are raised.
Choice "c" is incorrect. The demands for mutually "complementary goods" fluctuate together (e.g., more
cereal purchases are accompanied by an increase in the demand for milk).
Choice "d" is incorrect. Independent goods have unrelated demand functions (e.g., bread and vacuum
cleaners).