Suppose that when the price of strawberries decreases, Simone increases her purchase of whipped cream. To Simone
A) strawberries and whipped cream are normal goods.
B) strawberries and whipped cream are complements.
C) strawberries are a normal good and whipped cream is an inferior good.
D) strawberries and whipped cream and substitutes.
B
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When humanitarian efforts to free Sudanese slaves were introduced, ________ increased initially, which led to ________ prices
Over time, the slave trade became ________ profitable and the supply of slaves ________. A) supply; lower; less; decreased B) demand; lower; more; decreased C) demand; higher; more; increased D) supply; higher; more; increased
If a bank has excess reserves,
a. its reserves are greater than its liabilities. b. it can make a loan if it wishes. c. it cannot make a loan if it wishes. d. it must borrow from the Fed.
One type of regulatory practice common for public utilities is setting a price for consumers based on the average cost of production plus the normal rate of profit expected; this is known as what kind of regulation?
a. Cost-plus regulation b. Price cap regulation c. Bundling regulation d. Antitrust regulation
Which of the following is not true about a monopsonist?
A. It can set the wage rate and hire any desired number of workers at that wage. B. It is the only buyer of labor in a market. C. It usually extracts rents from its monopsony power. D. It determines the optimal employment-wage rate combination by equating the marginal revenue product of labor to the marginal cost of labor.