When purchases of tennis socks decline following an increase in the price of tennis sneakers (other things remaining equal), the relationship between these two items can be described as
A) substitutable.
B) complementary.
C) unique.
D) ordinary.
B
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Figure 4-11
The Russian government has restricted sugar availability to reduce the supply of illegal liquor (sugar is used to increase alcohol content). Russians also like to sweeten their tea with jam, another sugar product. Which graph in Figure 4-11 depicts the impact of sugar rationing on the Russian tea market?
a.
1
b.
2
c.
3
d.
4
Which statement is false?
A. The perfect competitor is a small firm producing an identical product. B. A perfectly competitive industry has great mobility of resources. C. There are many examples of perfectly competitive industries in the United States. D. The perfectly competitive firm makes zero economic profits in the long run.
Suppose households unexpectedly increase consumption. Which of the following will occur as a result of this unexpected increase in consumption?
A) an increase in stock prices B) a reduction in stock prices C) no change in stock prices D) an ambiguous effect on stock prices
The main objective of the members of a cartel is to
A. produce efficiently. B. make the industry more competitive. C. obtain a patent. D. earn economic profits.