Pasta and pizza are substitutes. If the price of pasta decreases, the demand for pizza will __________.
Fill in the blank(s) with the appropriate word(s).
Answer: Decrease, and the demand curve for pizza will shift leftward
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The demand for loanable funds comes from:
A. investment. B. savings. C. the government printing money. D. households spending on nondurable goods.
A appreciation of a currency occurs when:
(a) The value of the currency falls. (b) The value of the currency increases. (c) Inflation falls. (d) The balance of payments improves.
What is the typical relationship among interest rates on three-month Treasury bills, long-term Treasury bonds, and Baa corporate bonds?
What will be an ideal response?
Farmer Ted sells winter wheat in a perfectly competitive market. The market price for a bushel of winter wheat is $9. Ted has 270 bushels of wheat to sell. If his total variable cost is $2000 and his total fixed cost is $500, then
a. Ted should raise his price. b. Ted is minimizing his losses. c. Ted is earning positive economic profits. d. Ted is earning a normal profit