If two goods are substitutes, then
A) an increase in the price of one causes the demand for the other to fall.
B) there is an inverse relationship between changes in the price of one good and changes in the demand for the other.
C) if the price of one good falls, the demand for the other good falls also.
D) changes in the quantity demanded of one good will not affect the demand for the other.
C
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The long-run and short-run Phillips curves intersect where
a. the quantity of goods and services demanded equals the quantity supplied. b. the quantity of labor demanded equals the quantity of labor supplied. c. expected inflation is less than actual inflation. d. expected inflation is greater than actual inflation. e. expected inflation equals actual inflation.
Suppose economic stability in the United States increases. This will tend to cause which of the following to occur?
A) The demand for U.S. dollars will rise in the foreign exchange market. B) The supply of U.S. dollars will rise in the foreign exchange market. C) The demand for euros will rise in the foreign exchange market. D) Nothing will change in the foreign exchange market.
Assume Dell and Toshiba computers are substitutes in consumption; if the price of dell computers increases we would expect to see
a. An increase in demand for Toshiba computers b. An decrease in demand for Toshiba computers c. An increase in the quantity of Toshiba computers demanded d. An decrease in the quantity of Toshiba computers demanded
Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell at
a. prices at and above the equilibrium price. b. prices at and below the equilibrium price. c. prices above and below the equilibrium price, but not at the equilibrium price. d. the equilibrium price but not above or below the equilibrium price.