If the price of one good increases, and as a result the demand for another related good falls, the goods are
A) substitutes.
B) normal goods.
C) complements.
D) inferior goods.
C
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According to the Application, recent reforms in Cuba have relied less on the free market in determining prices in the housing market
Indicate whether the statement is true or false
An economy with only the household and firm sectors is called:
A) a mixed economy. B) a private economy. C) a command economy. D) none of the above.
If supply increases and demand decreases
A) the market clearing price definitely rises, and the equilibrium quantity definitely falls. B) the market clearing price definitely rises, and the effect on the equilibrium quantity is indeterminate. C) the market clearing price definitely falls, and the effect on the equilibrium quantity is indeterminate. D) the effect on the market clearing price is indeterminate, and the equilibrium quantity definitely falls.
The production of methamphetamine (meth) is a social problem in the Midwest. Iowa is considering two potential programs: Operation Methbust would increase the number of sheriffs' deputies to search out and destroy methamphetamine labs. Operation Say No to Meth would increase the training required of public school teachers so that they could better educate students about the health risks of using meth. Assuming that each program were successful, which of the following statements is correct?
a. Both Operation Methbust and Say No would reduce the demand for meth. b. Both Operation Methbust and Say No would reduce the supply of meth. c. Operation Methbust would reduce the demand for meth; Operation Say No would reduce the supply of meth. d. Operation Methbust would reduce the supply of meth; Operation Say No would reduce the demand for meth.