Two goods are considered substitutes only if
a. a decrease in the demand for one leads to a decrease in the supply of the other
b. an increase in the demand for one leads to a decrease in the supply of the other
c. an increase in the price of one leads to an increase in the demand for the other
d. a decrease in the price of one leads to an increase in the demand for the other
e. a decrease in the supply of one leads producers to switch to production of the other
C
You might also like to view...
If workers and firms expect that inflation will be 5 percent next year, and real wages are not changing over time, by how much will nominal wages increase?
A) less than 5 percent B) more than 5 percent C) 5 percent D) depends on actual inflation for next year
Two-part pricing allows the monopoly firm to capture all of the potential consumer surplus generated by the sale of its product
Indicate whether the statement is true or false
_____ and _____ are major factors in de-integration, which act in opposite directions
a. Vertical restraints; opportunism b. Uncertainty; volumetric interdependence c. Asset specificity; uncertainty d. Volumetric interdependence; vertical restraints
Moving downward on a downward sloping linear demand curve, the absolute value of the price elasticity of demand
A) is constant. B) increases continuously. C) decreases continuously. D) may either increase or decrease.