If a rise in the price of good B increases the quantity demanded of good A

A) A and B are substitutes.
B) A and B are complements.
C) A is a substitute for B, but B is a complement to A.
D) B is a substitute for A, but A is a complement to B.


A

Economics

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The value of both exports and imports are added to the value of national product.

Answer the following statement true (T) or false (F)

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Table 28.1Reduction in Emissions (in tons)MC to Reduce Emissions by Steel PlantMC to Reduce Emissions by Paper Plant1$400$20025002803600320Refer to Table 28.1. Suppose the government allows these two firms to trade pollution permits. What would be the price of a permit to emit the second ton of pollutants?

A. Less than $200. B. Between $280 and $400. C. More than $500. D. Between $200 and $280.

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Pookie's Pinball Palace restores old Pinball machines. Pookie has just spent $300 purchasing and cleaning a 1960s-era machine which he expects to sell for $2,000 once he is finished with the restoration. After having spent $300, Pookie discovers that he

will need to rewire the entire machine at a cost of $1,100 in order to finish the restoration. Alternatively, he can sell the machine "as is" now for $1,000. What is the marginal cost of completing the task? A) $300 B) $800 C) $1,100 D) $1,400

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Refer to the figure and assume the economy initially is in equilibrium at point a. In the new classical theory, a fully anticipated decrease in aggregate demand from AD 2 to AD 3 would move the economy:



A.  directly from a to h.
B.  from a to g to h.
C.  directly from a to d.
D.  from a to c to h.

Economics