An increase in the price of Product X leads to a decrease in demand for Product Y. The price increase also increases the demand for Product Z, a related good. Discuss the relationship between these products
Product X and Product Y: complements.
Product X and Product Z: substitutes.
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According to the text, the most serious cost of continued inflation in a democratic society is
A) its tendency to undermine social consensus and feed political conflict. B) the eventual recession that must inevitably occur as a result of the inflation. C) the open and disguised unemployment that accompanies it, especially among minorities and teenagers. D) the slowdown in the rate of economic growth that it causes. E) the steady rise in the cost of living that it entails.
Should the IMF be abolished? Discuss
What will be an ideal response?
Two emerging trends in 1990s macroeconomic thinking are that fiscal policy should be designed according to its ________ consequences and that monetary aggregates ________ useful in the conduct of monetary policy
A) short-run stabilization, are no longer B) short-run stabilization, continue to be C) long-run growth, are no longer D) long-run growth, continue to be
If 1 U.S. dollar exchanges for 7.0 Chinese Yuan, how much would it cost in U.S. dollars and cents to purchase a Chinese toy priced at 140 Yuan?
What will be an ideal response?