If an increase in the price of Product X causes an increase in the demand for Product Y, we can conclude that:
a. Products X and Y are complements.
b. Products X and Y are substitutes
c. Products X and Y are normal goods.
d. The price of Product Y will decrease.
b
You might also like to view...
If nominal GDP is $230 for a period and real GDP is $200 for the same period, what is the GDP price index for this period?
What will be an ideal response?
Suppose the Chicago Bears football team raises ticket prices by 13 percent and as a result the quantity of tickets demanded decreases by 21 percent. This response means that the demand for Bears tickets is
A) inelastic. B) elastic. C) unit elastic. D) perfectly inelastic. E) perfectly elastic.
Explain two reasons why the Fed does not have complete control over the level of bank deposits and loans. Explain how a change in either factor affects the deposit expansion process
What will be an ideal response?
Under a principal/agent relationship, the agent faces high costs of determining whether the principal is actually making efforts to the extent the agent expects
Indicate whether the statement is true or false