What are substitute goods, and how does a change in the price of one substitute good influence the demand for the other?
What will be an ideal response?
Substitute goods are goods that can be used in place of one another. If the price of one substitute good (good X) increases, then the demand of the other substitute good (good Y) increases, ceteris paribus.
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According to the classical model, prices and wages
A) must be set by government. B) move upward easily, but are "sticky" downward. C) are flexible. D) move downward easily, but are "sticky" upward.
Tax increases used to fund a new school will always lower housing values in a community
a. True b. False
Suppose the wage earned by pear pickers suddenly rises. Which of the following effects would we most likely observe as a result?
a. The supply of apple pickers would decrease and the equilibrium wage of apple pickers would decrease. b. The supply of apple pickers would decrease and the equilibrium wage of apple pickers would increase. c. The demand for apple pickers would increase and the equilibrium wage of apple pickers would decrease. d. The demand for apple pickers would decrease and the equilibrium wage of apple pickers would decrease.
Explain why the portion of the national debt owed to foreigners is a serious matter, whereas the portion owed to U.S. citizens is of less concern. Why does the U.S. national debt pose less of a problem than the debts of Greece in 2010?
What will be an ideal response?