An increase in the price of Heinz ketchup is likely to cause:
A. an increase in the demand for Hunt's ketchup, due to a change in the price of a substitute good.
B. an increase in the demand for Hunt's ketchup, due to a change in preferences.
C. a decrease in the demand for Hunt's ketchup, due to a change in preferences.
D. an increase in the demand for Hunt's ketchup, due to a change in the price of a complementary good.
Answer: A
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A) decrease; increase B) decrease; decrease C) increase; increase D) increase; decrease
Suppose Matt's New Cars issues a bond in which they'll need to pay $10,000 in one year, which includes 4% interest. How much will they receive for the bond?
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