If products A and B are complements and the price of B decreases, the:
A. demand curves for both A and B will shift to the left.
B. amount of B purchased will increase, but the demand curve for A will not shift.
C. demand for A will increase and the quantity of B demanded will increase.
D. demand for A will decline and the demand for B will increase.
Answer: C
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What are the key differences between how we illustrate an expansionary fiscal policy in the basic aggregate demand and aggregate supply model and in the dynamic aggregate demand and aggregate supply model?
What will be an ideal response?
The law of increasing costs indicates that
a. as more goods are produced, the dollar cost of producing those goods increases b. no matter how many goods you produce, costs tend to increase c. the opportunity cost of producing a good increases as more of the good is produced d. although total cost may increase as you produce more of a good, the opportunity cost of producing additional units of the good actually decreases e. because you are able to adopt greater division of labor when producing more goods, the opportunity cost of producing a good increases as less of the good is produced
As the opportunity cost of holding money decreases, the quantity demanded of money
A) increases. B) decreases. C) remains unchanged. D) increases, then decreases. E) decreases, then increases.
Which of the following would be most likely to improve the standard of living of the residents of a less-developed country?
What will be an ideal response?