After the price of smartphone apps falls, Alex buys fewer flash drives but he buys a new smartphone. For Alex
A. smartphone apps and flash drives are complements, and smartphone apps and smartphones are substitutes.
B. smartphone apps, flash drives, and smartphones are not all complements.
C. smartphone apps, flash drives, and smartphones are all complements.
D. smartphone apps and flash drives are substitutes, and smartphone apps and smartphones are complements.
Answer: D
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To derive a demand curve using utility analysis,
a. change a consumer's marginal utilities and note the effect of demand curve changes on market prices b. change a consumer's marginal utilities and note the effect of supply curve changes on market prices c. change a consumer's marginal utilities and note the effect of supply and demand curve changes on market prices d. note how the consumer's utility-maximizing consumption bundle changes in response to price changes e. note how the consumer's utility-maximizing consumption bundle changes in response to demand-curve shifts
What term do we use to refer to the understanding of the best ways to produce goods and services?
If the demand curve is horizontal, then demand is:
A. elastic. B. unit elastic. C. perfectly inelastic. D. perfectly elastic.
Which of the following will reduce the supply of motorcycles?
A. An increase in the population age 16 to 35, the primary consumers of motorcycles. B. An increase in taxes imposed on motorcycle producers. C. A technological improvement reducing the production costs of motorcycles. D. A government study that reveals motorcycle riders, on average, live 10 years longer than those who don't ride motorcycles.