Suppose one observes that when the price of peanut butter increases, the demand for jelly increases. One should conclude that:
A. peanut butter and jelly are substitutes.
B. peanut butter and jelly are complements.
C. peanut butter and jelly are normal goods.
D. peanut butter and jelly are inferior goods.
Answer: A
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a. True b. False Indicate whether the statement is true or false
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Tiger Woods, a professional golfer, pays a garage mechanic to change the motor oil of his car even though he can do the work himself. Which of the following best explains why Tiger Woods does not change the oil himself?
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