Refer to Figure 3-1. A decrease in the price of a complementary good would be represented by a movement from
A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.
C
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If an indifference curve is a straight line it will not show which of the following?
A) any marginal rate of substitution B) diminishing marginal rate of substitution C) combinations of goods among which a consumer is indifferent D) None of the above answers is correct.
An increase in the capital stock would be expected to
a. decrease the labor force. b. increase the level of output. c. decrease real GDP per capita. d. increase real GDP per capita.
In a market economy,
a. a larger income for one person means a smaller one for another. b. the government answers all the basic economic questions. c. a larger income for one person means it is possible for others to earn more too. d. economic output shrinks as we discover better ways of doing things.
"If the marginal product of labor curve slopes downward, then the average product of labor curve necessarily must slope downward." Explain whether the previous statement is correct or incorrect?
What will be an ideal response?