A and B are substitute goods, but A and C are complementary goods. If the costs of producing A decreases, then the demand for:
A. Both B and C will decrease
B. Both B and C will increase
C. B will increase and the demand for C will decrease
D. B will decrease and the demand for C will increase
D. B will decrease and the demand for C will increase
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The Fed's "dual mandate" is to achieve ________
A. a government budget surplus and low interest rates B. low inflation and maximum employment C. a stable quantity of money and stable prices D. zero unemployment and a stable means of payment
Refer to Figure 4-8. What is the value of the portion of producer surplus transferred to consumers as a result of the rent ceiling?
A) $40,000 B) $100,000 C) $125,000 D) $140,000
Because the price level does not affect the long-run determinants of real GDP, the long-run aggregate-supply is vertical
a. True b. False Indicate whether the statement is true or false
Lemon laws that allow consumers to return low-quality used cars are designed to help solve the problem of ________ in used car markets.
A. moral hazard B. thick markets C. experience ratings D. adverse selection