If textbooks and study guides are complements, then an increase in the price of textbooks will result in
a. more textbooks being sold.
b. more study guides being sold.
c. fewer study guides being sold.
d. no difference in the quantity sold of either good.
c
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A movement along the AE curve arises from a change in ________, and a movement along the AD curve arises from a change in ________
A) the price level; the price level B) real GDP; investment C) real GDP; the price level D) the price level; investment E) investment; the price level
The demand curve for pizza in Foodieland is vertical. If a tax is imposed on each pizza bought, ________
A) the burden of the tax will fall entirely on the buyers B) the burden of the tax will fall entirely on the sellers C) the tax incidence on the sellers will be higher than that on the buyers D) the deadweight loss due to taxation will be large
When a country has flexible exchange rates the:
a. Reserves account must equal zero. b. Reserves account must be positive. c. Reserves account must be negative. d. Current account must equal minus the reserves account. e. Reserves account can be positive or negative.
Refer to the graph shown. Area F is:
A. smaller than areas B and C, because demand is elastic between $10 and $30. B. larger than areas B and C, because demand is elastic between $10 and $30. C. larger than areas B and C, because demand is inelastic between $10 and $30. D. smaller than areas B and C, because demand is inelastic between $10 and $30.