Suppose the market demand curve for tacos can be expressed as QD = 120 - 3P - Pb, where QD is the quantity of tacos demanded, P is the price of a taco, and Pb is the price of a burrito. What is the relationship between burritos and tacos, from the point of view of consumers?
A) They are independent.
B) They are complements.
C) They are substitutes.
D) Not enough information to answer the question.
B
You might also like to view...
Suppose the GDP deflator in the United States is 125 and the GDP deflator in Japan is 100. Also assume the United States has trade barriers on Japanese goods in the form of quotas
What does this imply about the exchange rate of yen per dollar under the theory of purchasing power parity in the long run? A) The exchange rate of yen per dollar will be equal to 1.25. B) The exchange rate of yen per dollar will be greater than 0.8. C) The exchange rate of yen per dollar will be less than 0.8. D) The exchange rate of yen per dollar will be equal to 0.8.
A consumer is a borrower if
A) optimum current consumption is less than current disposable income. B) optimum current consumption is greater than current disposable income. C) future disposable income is greater than current disposable income. D) the consumer's indifference curves are relatively steep.
When workers are paid a wage that is less than their contribution to a monopsonist's revenues
A) this is sometimes referred to monopsonistic exploitation. B) this is sometimes referred to as an incentive. C) they seek part time employment. D) they file a grievance with their union representative.
The official definition of a recession is when real GDP declines for two consecutive quarters
a. True b. False