Assuming gasoline and oil to be complementary goods, the effect on the oil market of an increase in the price of gasoline (other things being equal) would best be described as a(n):
a. increase in the demand for oil. b. decrease in the demand for oil.
c. increase in the quantity of oil demanded. d. increase in the quantity of oil demanded.
b
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A disagreement involving two or more unions over which should have control over a particular firm or industry is
A) a closed shop. B) a union shop. C) a jurisdictional dispute. D) an industrial union.
The cost of a choice is
A) the price of the product selected. B) the price of the product not selected. C) the next best opportunity. D) all of the opportunities given up.
The demand for a product is likely to be more elastic
A. the shorter the time the consumer has to adjust to price changes. B. the lower the price of the good. C. the fewer the number of good substitutes. D. the less the essential nature of the good.
The kinked-demand curve model of oligopoly:
A. assumes a firm's rivals will ignore any price change it may initiate. B. suggests a firm's rivals will ignore a price cut but match a price increase. C. assumes a firm's rivals will match any price change it may initiate. D. suggests small changes in unit costs will have no effect on equilibrium price and output.