We observe that people buy less beef and more fish when the price of beef relative to fish increases. This indicates that beef and fish are
A. unrelated goods.
B. inferior goods.
C. substitutes.
D. complements.
Answer: C
You might also like to view...
If the demand for a good is highly elastic, that good is likely to have:
A. many close substitutes. B. many close complements. C. few close substitutes. D. few close complements.
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Which of the following occurs in the factor market?
A) households exchange resources for goods and services. B) firms exchange money for resources. C) firms exchange goods and services for resources. D) households exchange money for goods and services.
Which of the following is likely to cause an increase in both the wage rate and the level of employment in an industry?
A) A left shift in the supply curve for labor, without any change in the demand curve for labor B) A left shift in the demand curve for labor, without any change in the supply curve for labor C) A right shift in the supply curve for labor, without any change in the demand curve for labor D) A right shift in the demand curve for labor, without any change in the supply curve for labor