An increase in the price of a close substitute for good A will:
a. increase demand, increase price and increase the quantity exchanged.
b. increase demand, increase price and decrease the quantity exchanged.
c. increase supply, increase price and increase the quantity exchanged.
d. decrease demand, decrease price and decrease the quantity exchanged.
a
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Chris earns $1,500 per week and spends $1,000 per week on living expenses, puts $200 in a savings account, and buys $300 worth of shares in a stock mutual fund. Chris's saving is ________, and Chris's saving rate is ________.
A. $200; 20.0% B. $300; 20.0% C. $200; 13.3% D. $500; 33.3%
How will an interest rate increase in the United States affect equilibrium in the market for dollars against foreign currencies? (Assume the exchange rate is stated in terms of foreign currency per U.S. dollar.)
A) The equilibrium exchange rate will increase, and the equilibrium quantity of dollars traded will increase. B) The equilibrium exchange rate will decrease, and the equilibrium quantity of dollars traded cannot be determined. C) The equilibrium exchange rate cannot be determined, and the equilibrium quantity of dollars traded will increase. D) The equilibrium exchange rate will increase, and the equilibrium quantity of dollars traded cannot be determined.
In response to the global recession of 2008 and 2009, governments around the world
A. Expanded public works spending and income transfer programs. B. Expanded income transfer programs but reduced public spending programs. C. Reduced public works spending. D. Reduced income transfer programs.
Which of the following is an example of a negative externality?
A) There is an increase in injuries to pedestrians caused by accidents resulting from electronic billboards distracting drivers.
B) The opening of a new shopping mall increases the business of nearby restaurants.
C) A consumer pays a higher price than another consumer does for the same product.
D) Consumers pay a sales tax in addition to the price of a product.