"Because Coke and Pepsi are substitutes, a decrease in the price of Pepsi will cause the demand for Coke to decrease

This initial shift in demand for Coke results in a lower price for Coke; this lower price will cause the demand curve for Coke to shift to the left." Which of the following correctly comments on this statement?
A) The statement will be true if consumer tastes for Coke and Pepsi do not change.
B) The statement is false because Pepsi is an inferior good; Coke is a normal good.
C) The statement is false because one cannot assume that Coke and Pepsi are substitutes for all consumers.
D) The statement is false because a change in the price of Coke would not change the demand for Coke.


D

Economics

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i. Compared to a no-trade situation, exports make consumers better off. ii. Tariffs make consumers worse off. iii. Trade is restricted because protection brings small losses to a large number of people and large gains to a small number of people. A) Only i B) Only ii C) Only iii D) i and iii E) ii and iii

Economics

Which of the following would likely result in an increase in the demand for beef?

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Refer to the diagram of the market for money. The downward slope of the money demand curve D m is best explained in terms of the:


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C.  asset demand for money.
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Economics

What is an indifference curve?

A) It is a curve that shows the combinations of consumption bundles that give the consumer the same utility. B) It is a curve that shows the total utility and the marginal utility derived from consuming a bundle of goods. C) It is a curve that ranks a consumer's preference for various consumption bundles. D) It is a curve that shows the tradeoff a consumer faces among different combinations of consumption bundles.

Economics