When the decrease in the price of one good causes the demand for another good to decrease, the goods are
A. complements.
B. normal.
C. substitutes.
D. inferior.
Answer: C
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A central bank has ________ chance to identify a credit-driven bubble compared to an irrational exuberance bubble
A) a greater B) less of a C) about the same level of a D) a greater, less or about the same level of a
Which of the following statements is true?
a. Real GDP is a positive function of net exports. b. In the 1980s, the United States experienced a large trade surplus with Japan. c. Positive net exports mean that the domestic country imports more than it exports. d. Total U.S. net exports with Western Europe are zero. e. U.S. net exports are negative because of large trade deficits with other industrial nations.
William and Jamal live in the country of Dumexia. When Dumexia legalized international trade in bananas, the price of bananas in Dumexia increased. As a result, William became better off and Jamal became worse off. It follows that William is a seller, and Jamal is a buyer, of bananas
a. True b. False Indicate whether the statement is true or false
Refer to the diagram, where S d and D d are the domestic supply and demand for a product and P c is the world price of that product. S d + Q is the product supply curve after an import quota is imposed. The effect of the import quota on domestic price and domestic consumption is:
A. the same as that of a tariff of P c P t .
B. the same as that of a tariff of P t P a .
C. the same as that of a tariff of P c P a .
D. to raise price by more and reduce consumption less than a tariff of P c P t .