If two goods, J and K, are complements, then which of the following statements is FALSE?
A) They are consumed together.
B) An increase in the price of J causes the demand for K to rise.
C) When the quantity demanded of J increases, the demand for K increases.
D) A decrease in the price of K causes an increase in the demand for J.
B
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Using the average price and average quantity, what is the elasticity of demand for oranges when the price of oranges changes from $200 to $160 per bushel and so the quantity demanded changes from 1000 to 1400 bushels?
A) 1.5 B) 0.1 C) 10.0 D) 0.67
If price fixing by competitors is necessary because without it a firm will go bankrupt, is the price fixing legal?
What will be an ideal response?
The term "network externality" refers to a barrier to entry that exists because:
A) the value of the product to a consumer depends on the number of consumers using the product. B) a group of firms has divided the market into interconnected shares controlled by each firm. C) several firms are able to network with each other and control the market. D) consumers are unable to network, i.e., cooperate, with each other to control market price.
In high-inflation countries, workers prefer to spend their income faster compared to low-inflation countries
a. True b. False Indicate whether the statement is true or false