An increase in the price of gasoline will cause the demand curve for tires to shift in which direction?
A. To the left, because gasoline and tires are substitutes
B. To the left, because gasoline and tires are complements
C. To the right, because gasoline and tires are substitutes
D. To the right, because gasoline and tires are complements
E. To the right, because an increase in the price of gasoline makes consumers poorer and thus not willing to pay as much for tires
B. To the left, because gasoline and tires are complements
You might also like to view...
Which group is responsible for the policy decision of changing the money supply?
A. Federal Open Market Committee B. Federal Advisory Council C. Office of Management and Budget D. Thrift Advisory Council
An increase in population growth in a country
A) always causes an increase in labor resources. B) may not necessarily cause an increase in per capita real GDP. C) may not cause an increase in labor resources in rich countries because employers will cut down on the number of hours required of workers. D) will always cause an increase in per capita real GDP.
An oligopoly market structure is characterized by firms closely watching their rivals' pricing policies
a. True b. False Indicate whether the statement is true or false
Tommy's Tires operates in a perfectly competitive market. If the market price equals $50 per tire and ATC = $60 per tire at the profit-maximizing level of output, then in the long run
a. more firms will enter the market b. the market supply curve will shift to the right c. the equilibrium price per tire will fall d. average total costs will rise e. the market supply curve will shift to the left