Assume that steak and potatoes are complements. When the price of steak goes up, the demand curve for potatoes:
A) shifts to the left.
B) shifts to the right.
C) remains constant.
D) shifts to the right initially and then returns to its original position.
A
You might also like to view...
Sarah and Claire are sisters. Their aunt gave 10 cookies to Sarah and asked her to share some with Claire. She could choose how many she would give her, but if Claire was not happy with her share, her aunt would take back all the cookies
a) How should Sarah decide how many cookies to give Claire if Claire prefers more cookies to fewer cookies? b) Will there be any change in her decision if she knows that Claire values fairness?
Traffic congestion is an example of
A) a shortage of roadway space. B) a surplus of automobiles. C) a surplus of drivers. D) a surplus of people.
The percentage change in the demand for one good divided by the percentage change in the price of a related good is the
A) price elasticity of demand. B) price elasticity of supply. C) cross price elasticity of demand. D) income elasticity.
The ability to pay principle suggests that: a. traditional exemptions should be removed since they are more frequently used by people with ability to pay more taxes. b. people with different levels of income should be treated in the same manner
c. individuals receiving the benefits should be those who pay for them. d. those with the greatest ability to pay taxes should pay more than those with the least ability to pay taxes.