If the price of a complement for tires decreases, all else equal,
A. demand for tires will decrease.
B. demand for tires will increase.
C. quantity demanded for tires will decrease.
D. quantity supplied for tires will decrease.
E. supply for tires will increase.
Answer: B
You might also like to view...
According to this Application, how will an increase in government spending on entitlement programs affect the macroeconomy?
A) It will increase aggregate demand. B) It will increase aggregate supply. C) It will decrease aggregate demand. D) It will decrease aggregate supply.
The quantity of real GDP supplied ________ when the price level increases because ________
A) increases; the real wage rate falls B) decreases; investment increases C) increases; the quantity of money increases D) increases; aggregate demand increases E) decreases; the real wage rate rises
In the principal-agent relationship, the agent is
A) the owner of a resource that has hired another party to act on his behalf. B) the person who is placed in control over resources that are not his own and agrees to compensate the resource owner in the event of outcomes that do not satisfy the resource owner. C) the person who is placed in control over resources that are not his own, with a contractual obligation to use these resources in the interests of some other party. D) the person who places his resources in professional hands in exchange for the professional's promise to act on the resource owner's behalf.
Refer to the above figure. Suppose this industry was perfectly competitive and then merged into one monopolistic firm. The monopoly would
A) raise price from P1 to P2. B) reduce output from Q3 to Q1. C) reduce output from Q2 to Q1 and raise price from P3 to P4. D) raise price from P1 to P4.