Good X and good Y are substitutes. If the price of good Y increases, then the
a. demand for good X will decrease.
b. quantity demanded of good X will decrease.
c. demand for good X will increase.
d. quantity demanded of good X will increase.
c
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The more elastic the demand curve, the smaller is the deadweight loss resulting from the imposition of a tax
a. True b. False Indicate whether the statement is true or false
Why has the U.S. natural rate of unemployment fallen since the early 1990s?
What will be an ideal response?
We expect the price elasticity of supply to be
A) negative. B) positive. C) between -1 and +1. D) zero.
If the demand for an asset increases, its:
A. Price will increase and the rate of return for new investors of this asset will increase B. Price will decrease and the rate of return for new investors of this asset will increase C. Price will decrease and the rate of return for new investors of this asset will decrease D. Price will increase and the rate of return for new investors of this asset will decrease