If goods X and Y are substitutes and the price of X falls, all other things being equal, the demand curve for Y will
A) be indeterminate.
B) shift to the right.
C) shift to the left.
D) not shift at all.
Answer: C) shift to the left.
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Recall the Application. If consumer income in China increased and as a result the demand for pecans decreased, this would indicate that in China, pecans would be considered ________ goods
A) complementary B) normal C) substitute D) inferior
Under an infinitely inelastic supply of land, the economic rents to land ________ if the price of land doubles
A) increase by less than 100% B) double C) increase by more than 100% D) none of the above
? Along the short-run aggregate supply curve (SRAS), an increase (rightward shift) in the aggregate demand curve will increase:
A. ?both the price level and real GDP. B. real GDP without raising the price level. C. the price level without affecting real GDP. D. ?the price level but reduce real GDP.
Among the methods of nonprice rationing are
A. waiting in line. B. coupons. C. favored customers. D. all of the above