Which of the following is the most likely effect of higher chicken prices on the price and quantity purchased of beef, a substitute product?
a. The price of beef will increase, and the quantity purchased will fall.
b. The price of beef will fall, and the quantity purchased will increase.
c. The price of beef will increase, and the quantity purchased will increase.
d. The price of beef will fall, and the quantity purchased will fall.
C
You might also like to view...
A rise in the price level brings a ________ in the buying power of money that ________ consumption expenditures and causes the quantity of real GDP demanded to ________
A) fall; decreases; decrease B) fall; increases; increase C) rise; increases; increase D) rise; decreases; decrease E) fall; decreases; increase
A worker would be hurt least by inflation when the:
a. worker anticipates inflation and increases savings at the bank. b. worker is protected by a cost-of-living adjustment clause in an employment contract. c. price level increases but at a decreasing rate. d. worker is protected by fixed annual increases in wages and benefits in an employment contract.
To fund its expenditures after the Great Recession, the U.S. government:
a. Borrowed in private capital markets. b. Borrowed in the federal funds market. c.Created money to finance its spending needs. d. All of the above.
An economic theory about international trade that is based on the assumption that there are only two countries trading two goods
a. is useless, since the real world has many countries trading many goods. b. can be useful only in situations involving two countries and two goods. c. can be useful in the classroom, but is useless in the real world. d. can be useful in helping economists understand the complex world of international trade involving many countries and many goods.