Assuming that Pepsi-Cola and Coca-Cola are substitutes, a rise in the price of Pepsi-Cola, other things being equal, results in a(n):
a. upward movement along the demand curve for Coca-Cola.
b. downward movement along the demand curve for Coca-Cola.
c. leftward shift in the demand curve for Coca-Cola.
d. rightward shift in the demand curve for Coca-Cola.
d
You might also like to view...
Lizzie's budget line is shown in the figure above. Lizzie's real income in terms of magazines is ________ magazines
A) 5 B) 10 C) 15 D) 20
What happens to the profit-maximizing cartel price and quantity if the marginal cost of production declines?
A) The sellers are no longer price takers, so the change in marginal cost has no impact on the cartel outcome. B) If demand is downward sloping, the optimal cartel price should decline and the market quantity should increase. C) The sellers retain the same pricing strategy and capture higher per-unit profits. D) The cartel price increases and market quantity declines.
Other things being equal, during a period when the federal government issues more Treasury securities to borrow funds
A) the flow of government expenditures during that period must exceed the flow of tax revenues. B) the flow of government expenditures during that period must exceed the stock of tax collections. C) the stock of government deficit spending during that period must exceed the flow of tax revenues. D) the stock of government deficit spending during that period must exceed the stock of tax collections.
An investment bank is a financial institution that finances federal budget deficits at very low interest rates
a. True b. False Indicate whether the statement is true or false