Two goods are considered substitutes if
a. a decrease in the demand for one leads to a decrease in the supply of the other.
b. an increase in the demand for one leads to a decrease in the supply of the other.
c. an increase in the price of one leads to an increase in the demand for the other.
d. a decrease in the price of one leads to an increase in the demand for the other.
e. a decrease in the supply of one leads producers to switch to production of the other.
d. a decrease in the price of one leads to an increase in the demand for the other.
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Which of the following is a valid reason to consider government regulation?
A. Seeking some social objective that markets do not achieve. B. Fear that capitalism will prove too productive. C. Desire on the part of government to be useful. D. Requests for protection for an industry. E. All of the responses are correct.
There is news that the price of Tucker's Root Beer will increase significantly next week. If the demand for Tucker's Root Beer reacts only to this factor and shifts to the right, the position of this demand curve has reacted to a change in:
a. tastes. b. income levels. c. the price of other goods. d. the number of buyers. e. expectations.
The marginal propensity to consume tells us the intercept of the consumption function
a. True b. False
The marginal revenue that would be derived from producing a fifth unit of output is
A. $9.
B. $11.
C. $13.
D. $15.