If the price of beef jerky rises, then the substitution effect due to the price change will cause
A) an increase in the demand for beef jerky.
B) an increase in the demand for hot sauce, a complement for beef jerky.
C) an increase in the quantity of beef jerky demanded.
D) a decrease in the quantity of beef jerky demanded.
Answer: D
You might also like to view...
The theory that government borrowing may function like an increase in taxes, that is, reducing current consumption and business expenditures, was formulated by
A) John Maynard Keynes B) Jean Baptiste Say. C) David Ricardo. D) Adam Smith.
Describe the characteristics of the long-run aggregate supply curve. Explain how changes in the price level affect the short-run aggregate supply curve and the long-run aggregate supply curve.
What will be an ideal response?
Perhaps the best measure of economic progress is
A. the annual inflation rate, since it accounts for what is happening to prices. B. the growth rate of real GDP per capita, since it takes into account both price changes and population growth. C. the amount of working time needed for an individual worker to afford certain goods and services. D. the annual growth rate in the population.
A firm's rent is a fixed cost. If the rent increases, then in the figure above ________ upward
A) only curve A shifts B) only curve B shifts C) only curve C shifts D) both curves A and C shift E) both curves B and C shift