If products A and B are complements and the price of B decreases, the:
A. demand for A will decline and the demand for B will increase.
B. demand for A will increase and the amount of B demanded will increase.
C. demand curves for both A and B will shift to the left.
D. amount of B purchased will increase, but the demand curve for A will not shift.
Answer: B
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GDP tends to rise and fall during economic fluctuations but other measures follow the same pattern. One of these measures is
A. the annual precipitation rate. B. the growth of the money supply. C. the inflation rate. D. the unemployment rate.
Refer to the Article Summary. The article discusses wealth inequality, and for some people this means a more equitable distribution of wealth is needed in the economy. What is meant by a more equitable distribution of wealth?
A) a more allocatively efficient distribution of wealth B) a more productively efficient distribution of wealth C) wealth distributed based on income levels D) a more fair distribution of wealth
If the demand for product R increases as the price of product S increases, then _____
a. consumer preferences for S have increased b. R and S are not related goods c. R and S are substitutes d. R and S are complements e. R is an inferior good
A price ceiling might be an appropriate government response to a
a. period of falling farm prices due to unusually good harvests b. substantial increase in farm productivity due to marked applications of new technology in agriculture c. national security crisis leading to major shortages of essential goods d. period of extraordinary large surpluses of farm goods e. good in which the demand is considerably less than the supply