There is an increase in the demand for cookies when the price of coffee falls. Other things constant, we can conclude that cookies and coffee are
A) substitute goods.
B) inferior goods.
C) independent goods.
D) complementary goods.
Answer: D
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To maximize joint profits, the members of a cartel have to determine the level of industry output by setting marginal revenue qual to the cartel's joint marginal costs of production
Indicate whether the statement is true or false
Suppose that when the price of good X changes, the quantity of good Y demanded remains the same. The cross price elasticity of demand is
A) zero. B) positive. C) negative. D) either positive or negative.
Unemployment that results from fundamental technological changes in production, or from the substitution of new goods for customary ones, is
a. the natural rate of unemployment b. not counted as detracting from full employment c. cyclical unemployment d. frictional unemployment e. structural unemployment
Exhibit 1A-9 Multi-curve graph
Exhibit 1A-9 represents a three-variable relationship. As the annual income of consumers falls from $50,000 (line A) to $30,000 (line B), the result is a:
A. rightward movement along each curve. B. leftward movement along each curve,. C. leftward shift from curve A to curve B. D. rightward shift from curve B to curve A.