A 20 percent increase in the price of flour reduces flour consumption by about 10 percent. Such a price increase causes households to
a. spend less on flour.
b. spend more on flour.
c. spend the same amount on flour as before.
d. consume more goods like salt and baking powder, which are flour complements.
B
Economics
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Describe the type of international monetary system that is currently in use. What advantages do proponents of this type of system cite in support of its use? What disadvantages do its opponents cite?
Economics
A rise in government spending will cause a(n):
a. Increase in aggregate demand b. Decrease in prices c. fall in aggregate demand d. decrease in real domestic output
Economics
An increase in the marginal tax on labor income, increases the supply of labor.
a. true b. false
Economics
The aggregate price level is a topic of macroeconomics.
Answer the following statement true (T) or false (F)
Economics