If an increase in the price of good X results in a decrease in the quantity of Y demanded:
A. good X and good Y are substitutes.
B. good X and good Y are complements.
C. the cross-price elasticity of demand for good Y is positive.
D. There is not sufficient information to determine the relationship between good X and good Y.
Answer: B
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Miniville is an isolated town located on the southern shore of Lake Condescending, a very large lake. The western edge of Miniville is adjacent to impassable mountains and there are no towns or businesses for many miles to the east. The 300 residents of Miniville are evenly distributed along 3 miles of shoreline on the lake, east of the mountains. Lake Shore Drive, the only street in town, provides access to Miniville's homes and businesses. All residents live between the lake and the street; businesses locate on the other side of the street. Lake Shore Drive is 3 miles long, and the points labeled A, B, and C are 1, 2, and 3 miles from the western end of Lake Shore Drive, respectively. All residents of Miniville shop at the store located closest to their homes. src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q364g1.jpg" alt="" style="vertical-align: 0.0px;" height="117" width="538" />If three stores were to open sequentially, you would expect that those stores would be located:
A. in a cluster, nearest the mountains.
B. at points A, B, and C.
C. in a cluster, near the location chosen by the first store to locate.
D. halfway between the mountains and A, halfway between A and B, and halfway between B and C.
The number of people employed in a country increased. Everything else remaining unchanged, this will lead to a ________
A) fall in the country's GDP B) fall in the country's consumer price index C) fall in the country's GNP D) fall in the country's income per worker
The table above gives a firm's total product schedule. Suppose labor is the only variable factor of production. The price of labor is $500 per week and total fixed costs are $600 per week. What is the total cost of producing 70 units?
A) $1,700 B) $1,900 C) $2,100 D) $2,300
If a firm’s fixed costs increase, then profits drop but its output should not change.
Answer the following statement true (T) or false (F)