If the price of vanilla ice cream decreases, it is likely that
a. demand for vanilla ice cream will increase
b. demand for vanilla ice cream will decrease
c. demand for chocolate ice cream will increase
d. demand for chocolate ice cream will decrease
e. the quantity demanded of vanilla ice cream will decrease
D
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A few U.S. commercial banks are allowed to have "section 20 affiliates" that can
A) underwrite corporate debt and equity. B) operate in foreign markets. C) branch nationwide regardless of state laws. D) own majority shares in other banks.
The price of X falls by ten percent, and the quantity demanded of X increases by ten percent. Meanwhile, the quantity demanded of Y increases by ten percent too. We would conclude that
A) demand for X is elastic, and X and Y are substitutes. B) demand for X is elastic, and X and Y are complements. C) demand for X is unit-elastic, and X and Y are complements. D) demand for X is inelastic, and X and Y are unrelated.
The exchange rate between the dollar and the Swiss franc is $1 = 4 francs and the price of an imported Swiss box of chocolates is $5. If the exchange rate changes to $1 = 2 francs, the dollar price of the Swiss chocolates
A. rises to $20. B. falls to $2.50. C. rises to $10. D. does not change.
Marginal cost is defined as
A. the rate at which fixed cost changes with output. B. the rate at which total variable cost changes with output. C. total cost minus variable cost. D. the rate at which average cost changes with output.