Which if the following is the best example of derived demand?
A. The demand for movie theater ushers increases when more consumers choose to go to movie theaters.
B. More peanut butter is demanded as the price of strawberry jam falls.
C. When the price of Honda Accords increased, the demand for Nissan Altimas went up.
D. Janice got a Samsung Galaxy Tab for her birthday, and now her best friend Tamika wants one for her birthday.
Answer: A
You might also like to view...
Suppose the nominal gross domestic product of a nation is $1,000 and the money supply is $500 . According to the equation of exchange, the velocity of money in the nation is: a. 1,000
b. 500. c. 2. d. 500,000.
The business activities of Firm A confer positive externalities on Firm B, and the business activities of Firm B confer positive externalities on Firm A. If the two firms merged, then
a. their respective markets would move closer to the social optimum. b. their respective markets would move further away from the social optimum. c. total surplus in their respective markets would decrease. d. the merger would serve as an example of a misguided public policy toward externalities.
In general, pollution exists in situations in which
A. there are poorly defined private property rights. B. people are selfish. C. there exists public property. D. people refuse to take social responsibility seriously.
Firms that are "breaking even" are
A. shutting down in the short run. B. earning less than a normal rate of return. C. earning zero economic profits. D. All of the above are correct.