If products A and B are complements and the price of B decreases, the
What will be an ideal response?
demand for A will increase and the quantity of B demanded will increase.
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If Les can produce two pairs of pants per hour while Eva can produce one pair per hour, then it must be true that:
A. Eva has a comparative advantage in producing pants. B. Les has a comparative advantage in producing pants. C. Les has an absolute advantage in producing pants. D. Les has both comparative and absolute advantage in producing pants.
Charitable donations to the Red Cross
A) can be explained by the rational ignorance theory. B) can be explained by the rational self-interest theory. C) cannot be explained by the rational self-interest theory. D) prove that there is no scarcity in the United States.
Which statement(s) are most likely correct about supply?
a. A rise in price almost always leads to an increase in the quantity supplied of that good. b. A rise in price almost always leads to a decrease in the quantity supplied of that good. c. A fall in price almost always lead to an increase the quantity supplied. d. A rise in price almost always leader to an increase in the quantity demanded of that good.
In the open-economy macroeconomic model, the real exchange rate does not affect net capital outflow
a. True b. False Indicate whether the statement is true or false