If bagels and doughnuts are substitutes, then a decrease in the price of doughnuts will result in
A. An increase in the demand for bagels.
B. An increase in the demand for doughnuts.
C. A decrease in the demand for bagels.
D. A decrease in the demand for doughnuts.
Answer: C
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merger will usually be challenged if which of the following is expected to occur as a result of the merger?
A) an increase in consumer surplus B) competition remains after the merger C) a price decrease D) a price increase
Which of the following events in U.S. history did not create economic growth (shift the production possibilities curve outward)?
A. The Louisiana Purchase in 1803 that nearly doubled the land mass of the United States. B. Inventions of machines such as Cyrus McCormick's mechanical reaper. C. The introduction of the moving assembly line in automobile production by Henry Olds. D. The dramatic reduction in the U.S. unemployment rate from 1939 to 1941 as we prepared to enter World War II.
One reason the demand curve slopes ________ is that as prices fall ________.
A. upward; more people find that the price is now less than their reservation price B. downward; fewer people find that the price is now less than their reservation price C. downward; more people find that the price is now less than their reservation price D. upward; fewer people find that the price is now less than their reservation price
Refer to the information provided in Figure 6.1 below to answer the question(s) that follow.
Figure 6.1Refer to Figure 6.1. Assume Tom is on budget constraint AC and the price of a hamburger is $8.00. Tom's monthly income is
A. $2.50. B. $20. C. $80. D. $160.