If sugar and Nutrasweet are substitutes, then we can be certain that a decrease in the price of sugar will lead to an increase in the consumption of:
A. Nutrasweet only.
B. sugar and Nutrasweet.
C. sugar only.
D. None of the statements is correct.
Answer: C
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Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
Suppose Quick Buck and Pushy Sales decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Quick Buck cheats by reducing its price to $1 while Pushy Sales continues to comply with the collusive agreement, then Quick Buck will sell ________ units and Pushy Sales will sell ________ units.
A. 3,000; 1,000 B. 0; 3,000 C. 2,000; 1,000 D. 3,000; 0
What are the key steps for analyzing Demand functions based on Regression results?
What will be an ideal response?
Assume that a firm's marginal revenue just barely exceeds marginal cost. Under these conditions the firm should:
a. expand output. b. contract output. c. maintain output. d. There is insufficient information to answer the question.
When investors invest in something simply because everyone else is doing it, they are:
A. suspect to "tulip mania." B. following a "herd instinct." C. acting objectively on full information available in the market. D. leveraging market performance for their own gain.