There is an increase in the demand for cookies when the price of milk falls. Other things constant, we can conclude that cookies and milk are
A. independent goods.
B. substitute goods.
C. inferior goods.
D. complementary goods.
Answer: D
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For a fixed resource like land to be allocated to its highest valued use
a. a good social plan is needed. b. it should be allocated to those who will pay the most. c. it should be taxed at 100 percent of its rental value. d. it should be offered to those who promise to put it to its best use.
In the United States the richest 20 percent of households receive about ________ of total income
A) 10 percent B) 20 percent C) 50 percent D) 80 percent
A restaurant sells a large soft drink at a fixed price of $1.79. A term used by economists to describe the money received from the sale of an additional large soft drink is
A) pure profit. B) marginal revenue. C) gross earnings. D) net benefit.
Considering the future
A) is irrelevant to macroeconomics. B) is key to macroeconomic modelling. C) has a limited impact on macroeconomic analysis. D) matters only under special circumstances.