An increase in the price of Heinz ketchup is likely to cause:
A. an increase in the demand for Hunt's ketchup, due to a change in preferences.
B. an increase in the demand for Hunt's ketchup, due to a change in the price of a substitute good.
C. a decrease in the demand for Hunt's ketchup, due to a change in preferences.
D. an increase in the demand for Hunt's ketchup, due to a change in the price of a complementary good.
B. an increase in the demand for Hunt's ketchup, due to a change in the price of a substitute good.
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Refer to Scenario 13.1. If Frank gets to set the agenda, he will pit ________ in the first round to assure that ________ wins the first round vote
A) calamari and jalapeno poppers; jalapeno poppers B) jalapeno poppers and calamari; calamari C) potato skins and calamari; potato skins D) jalapeno poppers and potato skins; potato skins
A change in which of the following alters buying plans for cars but does NOT shift the demand curve for cars?
A) a 5 percent increase in people's income B) a 10 percent decrease in the price of car insurance C) a 20 percent increase in the price of a car D) an increased preference for walking rather than driving
As the dollar exchange rate, e, decreases, the quantity of dollars supplied in the foreign exchange market ________, and the quantity of dollars demanded in the foreign exchange market ________.
A. increases; increases B. decreases; increases C. decreases; decreases D. increases; decreases
In the face of the 2007–2009 recession, the President, Congress, and the Fed
A. decided to rely on the self-correcting mechanism of the economy to eliminate inflation. B. decided to rely on the self-correcting mechanism of the economy to reduce unemployment. C. pursued an active policy to balance the budget and fight inflation. D. pursued an active policy to expand aggregate demand.