If the price of hot dogs increases, what will happen in the market for potato chips, a complementary good?
a. demand will increase
b. quantity demanded will increase
c. demand will decrease
d. quantity demanded will decrease
e. supply will decrease
C
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Market demand curves may slope downward even if some individual demand curves do not because
a. the law of demand requires that this is true. b. lower prices may bring more purchasers into the market. c. merchants try to sell more at lower prices. d. people believe expensive goods are better goods.
A horizontal line showing the current rate of inflation, as determined by past expectations and pricing decisions is called the:
A. aggregate demand curve. B. short-run aggregate supply line. C. short-run equilibrium output line. D. long-run aggregate supply line.
According to Nobel Prize winning economist Joseph Stiglitz
A. over the years the IMF has markedly changed. B. the IMF was founded on the belief that markets often worked badly. C. the IMF now champions the free market as the best way to run an economy. D. All of the choices are true.
Some firms in monopolistically competitive markets differentiate their products by their physical characteristics.
Answer the following statement true (T) or false (F)