Goods A and B are complementary goods. An increase in the price of good A has occurred. In the market for good B this will lead to
A) an increase in price and a decrease in quantity.
B) an increase in price and an increase in quantity.
C) a decrease in price and a decrease in quantity.
D) a decrease in price and an increase in quantity.
Answer: C
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Your textbook highlights a debate that has been going on for some years. The issue is whether there should be a corporation tax, given that corporations are nothing more than groups of people. Should there be a corporation tax? Why or why not?
What will be an ideal response?
(a) In which year did disinflation begin? (b) In which year did deflation begin?
Which is an example of a differentiated oligopoly?
A. The beer industry. B. The cement industry. C. The primary aluminum industry. D. The polyester fiber industry.
If a person were given the choice of a $500 credit or a $500 deduction,
A. he would take the deduction if he were poor but the credit if he were rich. B. he would take the deduction if he were rich but the credit if he were poor. C. he would take the deduction every time. D. he would take the credit every time.