The number of cases of Coca-Cola bought increased by 50 percent when the price of pretzels declined by 10 percent. Assuming other factors are held constant, Coca-Cola and pretzels are classified as:

a. complements.
b. unrelated goods.
c. substitutes.
d. social goods.


a

Economics

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A) let the buyer beware. B) common sense is reality. C) the detail is in the interrelationship. D) other things being equal.

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When the price ceiling on eggs is lifted, there is a shortage of eggs in the market

a. True b. False Indicate whether the statement is true or false

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If the annual real interest rate on a 10-year inflation-protected bond equals 1.5 percent and the annual nominal rate of return on a 10-year bond without inflation protection is 4.2 percent, what average rate of inflation over the ten years would make holders of inflation-protected bonds and holders of bonds without inflation protection equally well off?

A. 4.2 percent B. 2.7 percent C. 1.5 percent D. 5.7 percent

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______ involves purchases that add to the stocks of goods kept by the firm to meet consumer demand.

a. Durable investment b. Capital investment c. Inventory investment d. Fixed investment

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