Which of the following explains why the quantity of a good demanded decreases when its price increases?
a. Consumer preferences change when the price of a good changes
b. The nominal income of consumers falls when the price of a good increases.
c. Substitutes become relatively cheaper when the price of a good increases.
d. Complements become relatively cheaper when the price of a good increases.
c
You might also like to view...
The payments in return for labor and capital are _____, respectively.
a. ?profit and rent b. ?rent and wages c. ?interest and profit d. ?wages and interest e. ?profit and wages
When an oligopolist chooses a maximin strategy, how is that helpful and what is being assumed about the other players?
What will be an ideal response?
In New York City, apartment rent can be adjusted only when a tenant leaves. This leads
A) people to change apartments often. B) landlords to encourage tenants to stay in their apartments. C) tenants to stay in apartments longer than they would otherwise. D) businesses to build new rental units.
Which of the following contributes most to the fluctuations of growth and decline that characterize business cycles?
a. consumption b. investment c. government purchases d. next exports