Given the supply curve of butter, a reduction in the price of margarine will tend to:
a. Increase the demand for margarine
b. Increase the demand for butter
c. Lower the price of butter
d. Raise the price of butter
Answer: c. Lower the price of butter
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According to classical economists
A. Demand stimulus is needed to produce full employment. B. Unemployment will not be a serious problem in a market economy. C. Say's law is not valid. D. Wage levels are always "sticky."
A game in which the players neither negotiate nor coordinate in any way is a
A. negative-sum game. B. cooperative game. C. zero-sum game. D. noncooperative game.
When the U.S. dollar appreciates,
a. U.S. exports rise. b. U.S. imports decline. c. aggregate demand shifts leftward. d. aggregate demand shifts rightward.
If the economy were producing at point E and moved to point D,
A. the unemployment rate would increase.
B. the unemployment rate would decrease.
C. the production possibilities would shift outward.
D. the economy would shift resources from producing butter to increasing the production of guns.