Goods X and Y are complementary goods. A decrease in price of good X has occurred. In the market for good Y, this will lead to
A) an increase in price and a decrease in quantity.
B) an increase in price and an increase in quantity.
C) a decrease in price and a decrease in quantity.
D) a decrease in price and an increase in quantity.
B
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A perpetual payment of $10,000, offered for sale at $125,000, is being offered at an effective yield of
A) 8%. B) 9.2% C) 12.5%. D) 80%. E) 92%.
Suppose you like to make, from scratch, pies filled with banana cream and vanilla pudding. You notice that the price of bananas has increased. As a result, your demand for vanilla pudding would
a. decrease. b. increase. c. be unaffected. d. There is insufficient information given to answer the question.
Anheuser-Busch purchased the Labatt brewery in Canada and has expanded its market and product offerings. This is an example of:
A. foreign direct investment. B. foreign portfolio investment. C. exporting. D. importing.
Empirical studies suggest that, other things equal, the smaller the number of hospitals in a city, the lower are nurses' wages. This is evidence that:
A. the labor markets of nurses are purely competitive. B. hospitals may possess some degree of monopsony power. C. the minimum wage does not apply to nurses. D. labor unions have been ineffective in increasing the wages of nurses.