If Kindle e-readers and Nook e-readers are substitutes, a higher price for Nooks would result in a(n)
a. increase in the demand for Nooks.
b. decrease in the demand for Nooks.
c. increase in the demand for Kindles.
d. decrease in the demand for Kindles.
c
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Working with the life-cycle hypothesis, we find in a cross-section study of consumption that as income rises there is a growing proportion of ________ people and thus a ________ saving ratio
A) retired, rising B) retired, falling C) working, rising D) working, falling
Refer to Scenario 15.2. If the interest rate were 2%, Furry Software should
A) retool the offices. B) rewire the network. C) move to Southern California. D) be indifferent between retooling and rewiring. E) be indifferent between rewiring and moving.
Based on the information in Scenario 15.7. You should
A) keep the wine in barrels. B) sell the wine now, to get $18 per bottle in profit. C) keep the wine unless you expect the price to fall below $18 per bottle. D) keep the wine unless you expect the price to rise above $22 per bottle. E) not do anything until you find out what the interest rate is.
The demand curve for a good is very unlikely to be perfectly vertical because
a. scarcity and limited income restrict the ability of consumers to afford goods as they become very expensive. b. as the price of a good rises to high enough levels, the incentive for other suppliers to invent new substitutes for the good increases. c. consumers generally do not care about the price of the goods they consume. d. both a and b are true.