Assuming Pepsi and Coke are substitutes, a decrease in the price of Pepsi is likely to
A. decrease the demand for Coke.
B. increase the demand for Pepsi.
C. decrease the demand for Pepsi.
D. increase the demand for Coke.
A. decrease the demand for Coke.
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As a tool of monetary policy the effectiveness of the discount rate is __________ because __________
A) Limited; banks will not borrow reserves from the Fed as long as they have ample excess reserves no matter how low the discount rate goes B) Limited; banks will borrow reserves from the Fed whenever they need them as long as they have a reserve deficiency no matter how high the discount rate goes C) very effective; changes in the discount rate leads changes in money market rates and thus assures that the injections and withdrawals of reserves from the banking system desired by the Fed will occur D) very effective; banks will predictably increase borrowings from the Federal Reserve when the discount rate decreases and decrease borrowings when the discount rate increases
Today, the most common exchange rate arrangement in the world is
A) the fixed exchange rate system. B) the gold standard system. C) the managed floating system. D) the freely floating exchange rate system.
What is the marginal cost of the 5th unit?
a. $100 b. $105 c. $110 d. $115
Last year due to the increased rainfall there was a plentiful supply of blueberries which caused their price to drop. Bakeries regularly produce and sell blueberry pie. Considering the market for blueberry pies, what factor of supply has been affected, and what was the overall effect on the supply?
A. The price of an input has been affected; supply will increase. B. The price of an input has been affected; supply will decrease. C. The new technology has been affected; supply will increase. D. The number of sellers has been affected; supply will increase.