If the price of gasoline rises sharply and the demand for sports utility vehicles falls, then the two goods are
A) complements.
B) normal goods.
C) substitutes.
D) inferior goods.
A
You might also like to view...
Public goods are those for which
A) individuals who do not pay can be excluded from consuming the good. B) individuals who do not pay cannot be excluded from consuming the good. C) external costs exist. D) no external costs exist.
According to the rational expectations theory, when the economy is at its long-run equilibrium output level, fully anticipated fiscal and monetary policies will affect the unemployment rate but not the inflation rate
a. True b. False Indicate whether the statement is true or false
Which of the following correctly describes price discrimination?
a. Selling the same good or service for different prices to different consumers for reasons unrelated to cost. b. Buying goods at a lower cost in one market and selling it at a higher price at another market. c. Selling the same good or service for the same price to different consumers. d. Charging higher prices for goods and services that are exported compared to those sold in the domestic market.
When a second firm enters a monopolist's market:
A. the former monopolist's average cost increases as its output level decreases. B. the demand curve facing the former monopolist shifts to the right. C. the market price rises as the average cost increases. D. None of these