If a decrease in the price of one good causes the demand curve for another good to shift to the left, the two goods must be
a. inferior
b. normal goods
c. inferior goods
d. substitutes
e. complements
D
You might also like to view...
The first automobile manufacturer to use a division of labor and to use a moving assembly line was
A. Henry Ford. B. Henry Leland. C. Henry Olds. D. Andrew Carnegie.
Which of the following shifts the demand curve for movies leftward?
A) a decrease in the price of NetFlix, a substitute for movies B) a decrease in the price of movie tickets C) an increase in movie star salaries D) an increase in incomes, assuming movies are a normal good E) an increase in the price of movie tickets
Which of the following examples accurately shows the cross-price elasticity of demand?
a. A +3 percent price for rye bread and a +6 percent demand for oatmeal bread equals a cross-price elasticity of demand of +18. b. A +9 percent price for roses and a +11 percent demand for tulips equals a cross-price elasticity of demand of +2. c. A +7 percent price for bar soap and a +21 percent demand for liquid soap equals a cross-price elasticity of demand of +28. d. A +10 percent price for chocolate chip cookies and a +30 percent demand for oatmeal raisin cookies equals a cross-price elasticity of demand of +3.
The present value of $525 received one year from today, assuming an annual rate of return of 5 percent is
a. $551.25 b. $525 c. $500 d. none of the above