Price changes for complements and substitutes have the same effect on demand.
a. true
b. false
Ans: b. false
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Refer to Table 4.1, which shows Flo's and Rita's individual supply schedules for frozen latte-on-a-stick. Assuming Flo and Rita are the only suppliers in the market, what is the market quantity supplied at a price of $1?
A) 0 B) 1 C) 3 D) 5
Capital shallowing occurs because old capital depreciates, or becomes completely obsolete with the passage of time
a. True b. False Indicate whether the statement is true or false
An increase in the market price of a product decreases producer surplus
a. True b. False Indicate whether the statement is true or false
Use the following table to answer the next question. The base year is 2007. YearHot DogsBaseballsBottles of Beer?PriceQuantityPriceQuantityPriceQuantity2005$2.50100$2.5050$1.0010020064.001005.001002.0015020075.001005.001002.0020020088.001508.002004.00200200910.0020010.002004.00250Compared to the base year, the rate of inflation for the year 2007 is
A. 7.1%. B. 12.6%. C. 0%. D. 10.5%.