If a 5 percent increase in the price of good A leads to a 4 percent decrease in the demand for good B, then ________
A) the goods are substitutes
B) only one good is a normal good
C) the goods are complements
D) both goods are normal goods
C
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Economic theory looks at social coordination as a process of
A) continuing mutual adjustments to the situations created by the actions of others. B) continuous adjustment of extremes to conform to the average. C) passing information up from below and instructions or commands down from above. D) sacrificing personal interest to the public or general interest. E) sacrificing the public interest to self-interest.
Marginal revenue product equals the marginal physical product multiplied by the quantity demanded.
Answer the following statement true (T) or false (F)
A major goal of federal government policy is to eliminate frictional unemployment
a. True b. False Indicate whether the statement is true or false
Consider a demand curve for peaches. Which of the following movements will be observed if the price of peaches decline at a point in time?
a. The demand curve will rotate inward at the given price level. b. The will be a movement up along the demand curve. c. The demand curve will rotate outward at the given price level. d. There will be a downward movement along the demand curve. e. The demand curve will become steeper.