If the price of peanut butter decreases substantially (ceteris paribus), the equilibrium quantity of jelly, a complement, is likely to:
a. increase, and the equilibrium price of jelly is likely to decrease.
b. increase, and the equilibrium price of jelly is likely to increase.
c. decrease, and the equilibrium price of jelly is likely to decrease.
d. decrease, and the equilibrium price is of jelly likely to increase.
b
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A person will choose to buy a good as long as
A) marginal benefit is at least as great as price. B) consumer surplus is positive. C) marginal benefit is positive. D) consumer surplus is at least as great as price.
The spending multiplier also applies to investment spending by businesses
a. True b. False Indicate whether the statement is true or false
Since 1980, the female/male annual earnings ratio of full-time workers has been ____, while the labor force participation rate of women has been ____ during this same period
a. rising; declining b. rising; increasing c. falling; increasing d. falling; declining
An individual has an absolute advantage in producing pizzas if that individual:
A. can produce more pizzas in a given amount of time than anyone else. B. has a lower opportunity cost of producing pizzas than anyone else. C. has a higher opportunity cost of producing pizzas than anyone else. D. charges the lowest price for pizzas.