After the price of milk increases, David buys more eggs and less cereal. For David
A) milk, eggs, and cereal are all complements.
B) milk and eggs are complements, and milk and cereal are substitutes.
C) milk and eggs are substitutes, and milk and cereal are complements.
D) milk, eggs, and cereal are all substitutes.
C
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In the figure above, if the government provides a subsidy to colleges of $6,000 per student per year, how many students will be accepted?
A) 8 million per year B) 12 million per year C) 10 million per year D) 16 million per year
Some people make purchases without complete information because:
A. they are irrational. B. the opportunity cost of getting more information outweighs the benefit of having more information. C. the benefit of having more information outweighs the opportunity cost of acquiring it. D. No one makes purchases without complete information.
To negotiate a higher wage rate, a union cannot
a. start with a strike and then work to reach a contract to end the strike b. negotiate in good faith and expect to hold its bargaining power c. negotiate without consulting other unions d. offer a supply curve of labor that is vertical e. offer a supply curve of labor that is horizontal
In September 2007 the British bank Northern Rock which specialized in home mortgages experienced a noteworthy bank run
a. True b. False Indicate whether the statement is true or false