Ceteris paribus, if consumer tastes change so that more people are eating broccoli, then what will happen to the market equilibrium for cabbage, a substitute good for broccoli?
a. Price will increase, and quantity will increase.
b. Price and quantity will stay the same.
c. Price will decrease, and quantity will increase.
d. Price will increase, and quantity will decrease.
e. Price will decrease, and quantity will decrease.
E
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Since 1940, the U.S. government has experienced
A) twice as many annual budget surpluses as annual budget deficits. B) only one year with a budget surplus. C) about the same number of years with budget deficits as with budget surpluses. D) many more budget deficits than budget surpluses.
Refer to Figure 6-10. The supply curve on which price elasticity changes at every point is shown in
A) Panel A. B) Panel B. C) Panel C. D) Panel D.
If the wage rate in a monopsonistic industry is $15, the marginal factor cost will be:
a. $0. b. $1. c. $15. d. greater than $15. e. less than $15.
The U.S. central bank is a financial institution that:
A. has the sole right to accept deposits and make loans. B. sets borrowing and lending in a country. C. has the sole right to issue currency. D. determines what assets will back a currency.