Coffee and sugar are complements. If a poor sugar harvest leads to an increase in the price of sugar, there will also be
A) an increase in the price of coffee.
B) a decrease in the price of coffee.
C) a rightward shift in the demand curve for coffee.
D) a leftward shift of the supply curve of coffee.
B
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If Mexicans increasingly lose confidence in their domestic financial markets and move their assets to other countries, the peso will depreciate
Indicate whether the statement is true or false
Suppose the demand for Pepsi is qp = 50 - 2pp + 1pc. The firm faces a constant marginal cost of m, and denotes the price of Coke
Assuming Bertrand behavior, derive Pepsi's best-response function and explain how the firm changes price in response to changes in its own marginal cost and changes in Coke's price.
Assume the table shown is for a hat factory, and shows the total production of hats given various numbers of employees. Diminishing marginal product sets in with the:
A. fourth worker.
B. third worker.
C. fifth worker.
D. second worker.
Which of the following is false?
a. The Fed controls the supply of money, even though privately owned commercial banks actually create and destroy money by making loans. b. With a 10% required reserve ratio, a $10,000 cash deposit in a bank would result in an increase in the bank's excess reserves by $1000. c. With a 10% required reserve ratio, a $1,000 bond purchase by the Fed directly creates $1,000 in money in the form of bank deposits, and indirectly permits up to $9,000 in additional money to be created through the multiple expansion in bank deposits. d. When the Fed sells government bonds, it will tend to cause a multiple contraction of bank deposits.