If two goods are substitutes, a decrease in the price of one will result in an increase in demand for the other.
a. true
b. false
Ans: a. true
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When the dollar depreciates, the cost to Americans of foreign goods
A. rises and the CPI falls. B. rises and the CPI rises. C. falls and the CPI rises. D. falls and the CPI falls.
"If firms in an oligopoly enter into a collusive agreement to operate as a monopoly, the industry produces the most output and if they operate as perfect competitors, the industry produces the least output
" Is the previous statement correct or incorrect? Why?
Which of the following is an exogenous variable in the Three-Sector-Model?
a. Oil prices b. Real GDP c. Quantity of real credit per time period d. Quantity of currency per time period e. All of the above are exogenous variables.
Markets that exhibit economies of scale over the entire range of market output
A. Are perfectly competitive. B. Have upward-sloping long-run average total cost curves. C. Are natural monopolies. D. Have downward-sloping short-run average total cost curves.