When the price of a good increases, what would we expect to see in the markets for its complements?
A. Lower prices and increased sales
B. Lower prices and decreased sales
C. Higher prices and increased sales
D. Higher prices and decreased sales
Answer: B
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Refer to Table 4-7. Suppose that the quantity of labor demanded increases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
A) W = $12.50; Q = 630,000 B) W = $8.50; Q = 550,000 C) W = $11.50; Q = 610,000 D) W = $9.50; Q = 570,000
Q: How many economists does it take to change a light bulb? A: All. Because then you will generate employment, more consumption, moving the aggregate demand curve to the right. This joke represents the view of
A) classical economists. B) Keynesian economists. C) economists who contend that money illusion never occurs. D) economists who conclude that wages and prices are very flexible.
The idea that people will substitute cheaper commodities for more expensive commodities is called
A. the marginal effect. B. the utility effect. C. the substitution effect. D. the real-income effect.
How has air quality changed in the United States since 1980?
What will be an ideal response?