The substitution effect of an increase in the price of peaches is
A) the change in the quantity of peaches demanded that results from the effect of the change in the price of peaches on the consumer's purchasing power.
B) the change in the demand for nectarines (a substitute good) that results when peaches become more expensive relative to nectarines, holding constant the effect of the price change on consumer purchasing power.
C) the change in the demand for peaches that results when the price of peaches increases.
D) the change in the quantity demanded that results from a change in the price of peaches, making peaches more expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power.
D
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Unions first became powerful in the United States in industries dominated by
A) government. B) highly profitable firms. C) large firms. D) small firms.
The collapse of the Bank of Credit and Commerce International, BCCI, showed the difficulty of international banking regulation. BCCI operated in more than ________ countries and was supervised by the small country of ________
A) 70, Luxembourg B) 100, Monaco C) 70, Monaco D) 100, Luxembourg
The primary source of earnings of commercial banks is income derived from
a. the checking account services provided to customers. b. the use of deposits to extend loans and undertake investments. c. vault cash and deposits held with the Fed. d. services provided to the U.S. Treasury.
The deadweight loss for a monopolist equals one-half of its profits for any given level of output
a. True b. False Indicate whether the statement is true or false