We know that products G and H are related goods, because when the price of G increases,
A) the demand curve for H will shift to the right, because G and H are complementary goods.
B) the quantity of H demanded will shift along its demand curve, because G and H are complementary goods.
C) the demand curve for H will shift to the left, because G and H are complementary goods.
D) the demand curve for H will remain unchanged because G and H are substitute goods.
C
You might also like to view...
Are stocks and bonds considered part of the investment component of GDP?
What will be an ideal response?
The textbook cites a study comparing a group of consumers with first-dollar coverage to a group with a $1,000 deductible. The study results indicate that those with the deductible spent _____ on health care and had ________ health outcomes relative to those with first-dollar coverage.
A. more; better B. more; the same C. less; worse D. less; the same
Refer to the graph shown. When price rises by 20 percent, quantity supplied rises by 25 percent. Which curve best demonstrates elasticity in this example?
A. A B. B C. C D. None of the answers is correct.
Other things being equal, an increase in the supply of money
A. reduces aggregate demand. B. increases the price level. C. reduces the amount of money balances. D. generates significant changes in relative prices.