Two products are complements if:
A. a decrease in the price of one causes buyers to demand less of the other.
B. an increase in the price of one causes buyers to demand more of the other.
C. a decrease in the price of one causes buyers to demand more of the other.
D. individuals consume the goods together.
C. a decrease in the price of one causes buyers to demand more of the other.
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When the price of pizzle trees increased by 20 percent last year, consumers ended up spending 10 percent more on the purchase of pizzle trees. This shows that the demand for pizzle trees
A) was elastic. B) was inelastic. C) was unit elastic. D) did not obey the law of demand.
The industry that most closely approximates the conditions of the oligopoly model is:
a. Restaurant. b. Retail clothing. c. Home construction. d. Airlines.
Open market operations are the
A) buying and selling of Federal Reserve Notes in the open market. B) means by which the Fed supplies the economy with currency. C) means by which the Fed acts as the government's banker. D) buying and selling of government securities by the Fed. E) buying and selling of government securities by the Treasury.
Which price would you expect to rise the most in a high-income growing economy?
A. Semiconductors for personal computers B. Tickets to a ballet performance C. Passenger automobiles D. Blu-ray players