Peanut butter and jelly are complements for many consumers. Consider the market for peanut butter. If there is an increase in the price of jelly,
A) there is a shift in the supply curve for jelly.
B) the price of peanut butter rises.
C) the quantity of peanut butter increases.
D) the demand curve for peanut butter does not shift; instead there is a movement along it.
E) there is a movement along the supply curve of peanut butter.
E
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actions may encourage even riskier behavior on the part of these large institutions in the future if these institutions believe that they, too, will be bailed out if they get in trouble. This risk faced by policymakers is known as A) asymmetric information. B) quantitative easing. C) too-big-to-fail policy. D) moral hazard.
When all the factors of aggregate expenditure are influenced by income, the multiplier becomes a function of the: a. marginal propensity of government purchases
b. marginal propensity to consume out of disposable income. c. marginal propensity of aggregate expenditure. d. marginal propensity to import.
When the long-run average total cost curve is increasing, this means that there are
a. economies of scale b. diseconomies of scale c. constant returns to scale d. diminishing returns e. some fixed factors of production
The federal government's role as the provider of national defense is justified by considerations of
A. Private goods. B. Public goods. C. Inequity. D. None of the choices are correct.