If the demand curve for product B shifts to the right as the price of product A declines, then:
A. A is a superior good and B is an inferior good.
B. both A and B are inferior goods.
C. A is an inferior good and B is a superior (or "normal") good.
D. A and B are complementary goods.
Answer: D
You might also like to view...
What is the relationship between debt, falling commodity prices and rainforest degradation?
What will be an ideal response?
Which school of economics held that individuals and business firms learn, through experience, to instantaneously anticipate the consequences of changes in monetary and fiscal policy?
A. The Keynesians B. The monetarists C. The supply-siders D. The rational expectationists
Which of the following will shift the supply curve of good X rightward?
a) the price of Y, a substitute in production for good X, rises b) an increase in the cost of capital used to produce good X c) an increase in the price of energy d) a decrease in the number of suppliers of good X e) a decrease in the wages of workers employed to produce good X
The Southern Common Market (MERCOSUR) is actually a
A. free-trade area. B. economic union. C. customs union. D. common market.