Two brands of water, Natural Water and Mountain Water, are close substitutes. If the price of Mountain Water decreases, the fall in price
A) shifts the demand curve for Natural Water rightward.
B) shifts the demand curve for Natural Water leftward.
C) increases the price of Natural Water.
D) increases the demand for Mountain Water.
E) More information is needed to determine if the demand curve for Natural Water shifts rightward or leftward.
B
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If the cross-price elasticity of demand between blueberries and yogurt is negative, then the two goods are:
A. normal goods. B. inferior goods. C. substitutes. D. complements.
Financial institutions participate in which of the following activities?
A) indirect finance B) financial intermediation C) the issuance of loans D) all of the above
The answer is, "Because of the free rider problem." The question is:
A) Why can't the government produce nonexcludable public goods? B) Why can't the market produce nonexcludable public goods? C) Why do negative externalities exist? D) Why do positive externalities exist? E) b and d
A risk-neutral consumer
A. will always refuse a fair gamble. B. avoids all risks. C. will always accept a fair gamble. D. is indifferent between accepting and refusing a fair gamble.