What happens to the demand for a good if a complement's price increases?
A) The demand increases and the demand curve shifts rightward.
B) The demand decreases and the demand curve shifts rightward.
C) The demand increases and the demand curve shifts leftward.
D) The demand decreases and the demand curve shifts leftward.
E) There is no impact on demand for the good and the demand curve does not shift.
D
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A consumer who chooses the optimal bundle will go to a point on the highest attainable indifference curve.
Answer the following statement true (T) or false (F)
Identify three things which affect the choices households make with respect to how much labor to supply?
What will be an ideal response?
Once the marginal product of capital is equal to the real rental cost of capital ________
A) inventories will stabilize B) depreciation will equal the marginal rate of substitution C) the economy will reach full employment D) a profit-seeking firm will stop acquiring capital
Suppose labor productivity differences are the only determinants of comparative advantage, and Brazil and Chile both produce only coffee and sugar. In Chile, either 5 units of coffee or 2 units of sugar can be produced in one day. In Brazil, a day of labor produces either 2 units of coffee or 1 unit of sugar. Which of the following statements is true?
a. Brazil has an absolute advantage in producing only coffee. b. Brazil has an absolute advantage in producing only sugar. c. Chile has an absolute advantage in the production of both coffee and sugar. d. Chile has an absolute advantage in producing only coffee. e. Brazil has an absolute advantage in the production of both coffee and sugar.