Assume that coffee and tea are substitutes. Given a downward sloping demand curve for tea, an increase in the price of tea will cause
A) an increase in the demand for coffee.
B) a decrease in the demand for coffee.
C) a leftward shift of the demand curve for tea.
D) a leftward shift in the demand for coffee.
A
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Which is larger: The price elasticity of demand for food or the price elasticity of demand for oranges? Why?
What will be an ideal response?
In the long run in a monopolistic competitive industry,
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Changes in the GDP deflator reflect only changes in the prices of goods and services
a. True b. False Indicate whether the statement is true or false
Unions may cause unemployment if:
A. outsiders push wages down. B. insiders force real wages higher than the market-clearing level. C. outsiders are subject to minimum-wage legislation. D. insiders are fired and outsiders are hired.