Assume that coffee and tea are substitutes. When the price of coffee increases
A) the supply of tea increases.
B) the demand for tea decreases.
C) the demand for tea increases.
D) the supply of tea decreases.
Answer: C) the demand for tea increases.
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Refer to Figure 4.1, which shows Molly's and Ryan's individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the market, if the market quantity demanded is 15, the price must be
A) $0. B) $6. C) $9. D) $15.
By 2010, the U.S. economy had emerged from the recession that had begun in 2007. Despite an economic growth rate well above zero, unemployment showed little sign of declining much below ten percent
Focusing on the definition of the unemployment rate, explain how it is possible to have positive economic growth without declining unemployment.
If Jet Cruises chooses to Ad and Easy Sail then chooses to Ad, Jet Cruises earns ________ million in net profit and Easy Sail earns ________ million.
Jet Cruises wants to prevent Easy Sail from entering the sailboat market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Jet Cruises and Easy Sail have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.
A) $4; $3 B) $10; $2 C) $2; $4 D) $5; $2
Concerts in arenas are not excludable because it is virtually impossible to prevent someone from seeing the show
a. True b. False Indicate whether the statement is true or false