If tastes for a good increased and the price of a substitute good decreased at the same time, as a result:
a. prices would rise
b. prices would fall.
c. larger quantities to be exchanged.
d. we would not know which direction either prices or quantities exchanged would be altered without more information.
d
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Which of the following best approximates a pure monopoly?
A. the fast food market B. the oil market C. the steel market D. the NFL
An economic principle that explains why countries produce different goods and services is
A) trade as a percentage of GDP. B) absolute advantage. C) NAFTA. D) comparative advantage.
One reason the decline in asset prices just before and during the 2008 recession undermined the health of the economy is that they:
A. raised the trade deficit when foreigners reduced purchases of U.S. assets. B. led to a contraction in consumer loans because the value of collateral declined. C. raised the value of the dollar making U.S. goods more expensive to foreigners. D. undermined consumer and business confidence.
If a firm facing a linear demand curve experiences an increase in total revenue after lowering the price,
A. the initial price was set at a point where the demand is inelastic. B. the initial price was set at a point where the demand is elastic. C. the new price is set where the demand is perfectly elastic. D. the new price is set where the demand is perfectly inelastic.