We observe that people buy less steak and more potatoes when the price of steak relative to potatoes increases. This indicates that steak and potatoes are
A) substitutes.
B) complements.
C) inferior goods.
D) unrelated goods.
Answer: A
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What is an aggregate demand curve
a. The demand of an individual with respect to price b. The total demand of the market with respect to price of a good c. The preference of an individual in the market d. None of the above
When it is cheaper for one firm to produce a particular product, ____ exist(s).
A. economies of scale B. economies of scope C. diminishing marginal returns D. cross-subsidization
Standard of living tends to rise in proportion to the growth rate in labor productivity
Indicate whether the statement is true or false
If a firm can change market prices by altering its output, then it
A. Engages in marginal cost pricing. B. Is a price taker. C. Faces a flat demand curve. D. Has market power.