We say that goods are substitutes when they:
A. change a consumer's preferences for a good or service.
B. can replace something consumers typically purchase at a significantly lower price.
C. are consumed together, so that purchasing one will make a consumer more likely to purchase the other.
D. serve similar-enough purposes that a consumer might purchase one in place of the other.
Answer: D
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Shondra's real wage in 2016 is $18.50. If the price level is 106, what is Shondra's nominal wage?
A) $19.61 B) $18.61 C) $18.50 D) $17.44
Suppose the current price of oil is $90 a barrel and the quantity supplied is 800 million barrels per day
If the price elasticity of supply for oil in the short run is estimated at 0.5, use the midpoint formula to calculate the percentage change in quantity supplied when the price of oil rises to $98 a barrel.
British manufacturers lost their competitive edge in the early twentieth century to industries in the United States and elsewhere in Europe mainly because they failed to reorganize their operations to take full advantage of their inventions
Indicate whether the statement is true or false
A linear demand curve
A. will have an ever rising total revenue function. B. becomes less elastic as price falls. C. always has a constant elasticity. D. can have constant elasticity if its slope is more than one.