If Pepsi goes on sale and decreases its price by 10 percent, and as a result, the quantity demanded of Coca Cola decreases by 5 percent, then Pepsi and Coke are ________ goods
A) inferior
B) normal
C) substitute
D) complementary
E) unrelated
C
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Which institution tends to increase specialization in society?
A) Barter B) Government planning bureaus C) Money D) Price regulation
When the government closes an expansionary gap with a change in government spending, the _____ in government spending leads to _____
a. decrease; a decrease in both real GDP and the price level b. decrease; a decrease in real GDP and an increase in the price level c. decrease; an increase in both real GDP and the price level d. decrease; an increase in real GDP and a decrease in the price level e. increase; a decrease in both real GDP and the price level
If marginal revenue is less than marginal costs
A) production should be decreased. B) production should be decreased and profits will grow. C) production should be decreased and losses will decrease. D) all of these choices are possible.
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y2. C. P3 and Y1. D. P2 and Y3.