If the price of a substitute to good X increases, then
a. the demand for good X will not change.
b. the demand for good X will increase.
c. the demand for good X will decrease.
d. the market price of good X will decrease.
Ans: b. the demand for good X will increase.
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If the wheat harvest next summer in Canada will be much less than had been expected, there will tend to be
A) a decrease in the price of wheat futures and an increase in the current cash price of wheat in the US. B) a decrease in the price of wheat futures and in the current cash price of wheat in the US. C) an increase in the price of wheat futures and a decrease in the current cash price of wheat in the US. D) an increase in the price of wheat futures and in the current cash price of wheat in the US.
A cartel is a group of firms that: a. agree to increase industry output in order to boost profits
b. agree to restrict industry output in order to boost profits. c. agree to differentiate their products from one another. d. together control a significant portion of an industry's output, but fail to consider the behavior of rivals when making decisions.
If Herbert the hair stylist raises the price of his cuts from $13 to $15 and the demand for his cuts falls from 300 to 260, then we conclude that, within the price range of $13 to $15, demand is
a. price inelastic b. price elastic c. unit elastic d. cross elastic e. income inelastic
An important determinant of a country's standard of living is the amount of __________ it typically experiences
Fill in the blank(s) with correct word