If coffee and cream are complements, an increase in the price of coffee will cause
a. the demand for cream to increase.
b. the demand for cream to fall.
c. the demand for coffee to fall.
d. no change in the demand for cream; only quantity demanded would be affected.
B
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Excess capacity refers to any unsold output due to insufficient demand
Indicate whether the statement is true or false
Which statement about Temporary Assistance for Needy Families (TANF) is true?
a. States receiving TANF grants must impose work requirements on recipients. b. Each state gives the federal government a fixed amount of money for TANF. c. The federal government decides how each state will spend TANF grants. d. TANF benefits to poor families are the same amount in every state.
A good way to start every Three-Sector-Model analysis is to:
a. Describe what is happening in the foreign exchange market and then proceed to explain what happens in the other two markets simultaneously. b. Identify the economic effects that result from an economic change and then work your way backward to identify the most important part of the analysis, which is the economic shock that started it all. c. Analyze the chain reaction of economic interactions. d. Gather basic information about the three markets and describe qualitatively the economic setting in each market.
Exhibit 15-2 Balance Sheet of Springfield National Bank Assets Liabilities Total reserves$500 Demand deposits$1,000 Loans$500 In Exhibit 15-2, if Springfield National's customers write checks for $200 and the required reserve ratio is 20 percent, then its required reserves fall to:
A. $0. B. $40. C. $160. D. $460.