If good B is a complement to good A, then a rise in the price of B
a. increases the quantity demanded of A
b. decreases the demand for A
c. increases the demand for A
d. decreases the quantity demanded of A
e. will cause the demand for B to increase
B
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Refer to Figure 15-15. What is the economically efficient output level and what is the price at that level?
A) Q2, P2 B) Q2, P3 C) Q3, P2 D) Q4, P1
The per-worker production function flattens out due to ________
A) the negative relationship between price and quantity demanded B) the positive relationship between price and quantity demanded C) the diminishing marginal product of capital D) an increase in the general level of prices
Suppose two Cournot duopolist firms operate at zero marginal cost. The market demand is p = a - bQ. Firm 1's best-response function is
A) q1 = (a - bq2 )/2b. B) q1 = (a - 2bq2 )/2b. C) q1 = a/b. D) q1 = a/2b.
In the short run, a monopolist will always shut down when
a. total cost is greater than total revenue at all output levels b. total variable cost is greater than fixed cost c. total revenue is greater than total variable cost at all output levels d. fixed cost is greater than total revenue at all output levels e. total variable cost is greater than total revenue at all output levels