When the price of good X rises, the demand for good Y rises. Explain what this relationship implies about the two goods
What will be an ideal response?
Goods X and Y must be substitutes. When the price of good X rises, the quantity of good Y demanded will rise.
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In a simultaneous move, incomplete information game in which player 1 is unsure of which of two types player 2 is, player 1's strategy must include an action for each possible type that player 2 might be, but player 2 only needs to pick one action since he knows what type he is.
Answer the following statement true (T) or false (F)
Which of the following examples is most likely done out of self-interest instead of selfishness?
a. approving a cheap manufacturing method for personal profit even though it severely harms the environment b. choosing one charity over another because it offers a larger tax deduction c. stockpiling millions of dollars for security and refusing to give any to charity d. reducing the pay for low-level employees to increase personal profit
Refer to the figure. Suppose the graphs represent the demand for use of a local golf course for which there is no significant competition (it has a local monopoly); P denotes the price of a round of golf; Q is the quantity of rounds "sold" each day. If the left graph represents the demand during weekdays and the right graph the weekend demand, then over the course of a full seven-day week this price-discriminating, profit-maximizing golf course should sell a total of:
A. 300 rounds.
B. 740 rounds.
C. 900 rounds.
D. 1,200 rounds.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward