The current demand for a good would decrease if
a. the price of a complementary good rose.
b. the price of a substitute good rose.
c. consumers suddenly believed the price of the good would be sharply higher in the future.
d. consumer income increased.
a. the price of a complementary good rose.
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U.S. prices are considered stable only when the Consumer Price Index
a. falls. b. moves 10 percent or less in a year’s time. c. moves 2 percent or less in a year’s time. d. remains unchanged.
Which of the following would not affect this year's GDP?
a. the paint you purchased when painting your house b. the new car your parents purchased and gave to you as a birthday present c. a Gateway computer purchased by the U.S. government d. the value of a used car you purchased, at its sale price
If an increase in the price of one good causes buyers to demand more of another good, then the two goods are:
A. normal goods. B. inferior goods. C. substitutes. D. complements.
The basic problem of a shared monopoly from the point of view of those involved is that
A. the shared output is too high for the high price to be maintained. B. revenue is lower than in the other oligopoly models. C. collusive agreements are difficult to sustain. D. profits are lower than in the other oligopoly models.