Suppose Good Z is a normal good. Which of the following will increase the demand for Good Z?
A. an increase in the price of its complements
B. an increase in the price of its substitutes
C. a decrease in income
D. a lower expected future relative price of Good Z
Answer: B
You might also like to view...
Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Mia's opportunity cost of producing one hair pin is
A) 1/3 of a bandana. B) 2.5 bandanas. C) 3 bandanas. D) 10 bandanas.
In actual financial markets, securities are __________ divisible, which __________ a type of market imperfection
A) perfectly, is B) perfectly, is not C) imperfectly, is D) imperfectly, is not
As an investor, negative supply shocks are not attractive because ________
A) they tend to lead to lower productivity B) the real rental price of capital tends to decline driving rental incomes down C) with decreases in expected income, claims on those incomes also tend to fall leading to stock market downturns D) all of the above E) none of the above
In managerial economics, agency costs refer to
a. booking travel arrangements b. model and actor representation c. imperfections in dealing with those hired d. foreign espionage