A decrease in the price of creamer will increase the equilibrium price and decrease the equilibrium quantity in the market for coffee
a. True
b. False
Indicate whether the statement is true or false
False
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The major incentive for cost minimization is the
A. power of shareholders in the company. B. fear of top management by workers. C. discipline imposed by the market system. D. impact on U.S. corporations of taxing by the government.
Suppose you have $400,000 saved up and purchase a medium-sized house for $200,000. Consider the following 2 scenarios:
i. The very next day, the prices of all houses, including the one you have just bought, double. ii. The very next day, the prices of all houses, including the one you bought, fall by half. Show that both scenarios increase your utility.
What is marginal cost?
The slope of the supply of loanable funds curve represents the
a. positive relation between the real interest rate and investment. b. positive relation between the real interest rate and saving. c. negative relation between the real interest rate and investment. d. negative relation between the real interest rate and saving.