Two goods are considered substitutes only if a(n)
a. decrease in the demand for one leads to a decrease in the supply of the other
b. increase in the demand for one leads to a decrease in the supply of the other
c. increase in the price of one leads to an increase in the demand for the other
d. decrease in the price of one leads to an increase in the demand for the other
e. decrease in the supply of one leads producers to switch to production of the other
C
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A-1 bank initially has no excess reserves. If the desired reserve ratio is 10 percent and a new deposit of $10,000 is made in A-1, then A-1
A) can immediately loan $9,000. B) is required to hold the deposit in its reserves. C) can immediately loan $100,000. D) can immediately loan a multiple of the $10,000. E) can immediately loan $10,000.
X is exports, M is imports, T is net taxes, G is government expenditure, C is consumption expenditure, S is saving, and I is investment. The government sector balance is equal to
A) T - G. B) C + S + T. C) S - I. D) X - M.
What are the two meanings of interest in economics?
What will be an ideal response?
Which of the following is an example of an externality?
a. cigarette smoke that permeates an entire restaurant b. a flu shot that prevents a student from transmitting the virus c. a beautiful flower garden outside the county courthouse d. All of the above are examples of externalities.