Ceteris paribus, if consumer tastes change so that more people are eating broccoli, then what will happen to the market equilibrium for cabbage, a substitute good for broccoli?
A. Price will increase, and quantity will increase.
B. Price will decrease, and quantity will decrease.
C. Price will decrease, and quantity will increase.
D. Price will increase, and quantity will decrease.
Answer: B
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Which of the following is not true in the long-run?
a. There are no variable costs. b. There are no fixed costs. c. Total costs equal variable costs. d. Identical firms will make zero profits.
There was a silver lining during the Great Depression. Compared to other periods in U.S. history, this period was one of the most technologically advanced
Indicate whether the statement is true or false
Suppose that Melinda goes to the movies 6 times per month when the price is $14 and 4 times per month when the price is $20. What is the price elasticity of Melinda’s demand curve?
a. 0.02 b. 0.2 c. 1.33 d. 10.0
Which of the following is true of the total revenue curve of a firm in a perfectly competitive market? a. The total revenue curve is independent of the market price
b. As market price increases, the slope of the total revenue curve becomes flatter. c. As market price increases, the slope of the total revenue curve becomes steeper. d. As market price increases, the slope of the total revenue curve approaches zero.