If the price of coffee decreases, the demand curve for tea (a substitute good) will
a. remain unchanged.
b. shift to the right.
c. shift to the left.
d. do none of the above
C
You might also like to view...
John wants to buy a new lawn mower. He can either buy it in the US and pay $500 or buy it in Mexico and pay 8188 Mexican Pesos. At the exchange rate of 1 Mexican Peso=0.771US$, ignoring any other costs, he would
a. Prefer buying in the US b. Prefer buying in Mexico c. Be indifferent about where he buys his television d. None of the above
Wheat farmers in Kansas would benefit from a devastating crop failure in North Dakota (another major wheat-producing state) if the U.S. demand for wheat is
a. inelastic b. elastic c. unit elastic d. downward sloping e. perfectly elastic
The effort to collect and manage revenue from taxes is called:
A. an externality. B. deadweight loss. C. administrative burden. D. transfer of surplus.
If policy makers initiate a decrease in the money supply, reductions in government purchases, or increases in taxes, it should drive the economy toward a point on the Phillips curve with ______.
a. higher inflation but lower unemployment b. higher inflation and higher unemployment c. lower inflation but higher unemployment d. lower inflation and lower unemployment