Both sugar and fructose can be used in the production of candy. If the price of sugar increases,
a. the demand for sugar increases
b. sugar becomes relatively more expensive than fructose only if the price of fructose falls
c. sugar becomes relatively more expensive than fructose, other things constant
d. the price of fructose immediately increases
e. the price of fructose immediately decreases
C
You might also like to view...
The table above gives the utility Andy receives from different quantities of vanilla ice cream cones. Complete the table
What will be an ideal response?
Consider a tax cut which affects not only consumer disposable income, but also after-tax earnings from labor supplied to labor markets and from financial assets acquired through saving. In the long run we would expect this tax cut to
A) increase both the price level and the level of real GDP. B) decrease both the price level and increase real GDP. C) increase the price level. D) increase the level of real GDP.
Which of the following is not a function of government?
a. promotion of competition b. stabilization to achieve the macroeconomic goals c. redistribution of income through taxation and transfer payments d. production of public goods e. providing the economy's private goods
In Table 9.4, Market 3 would be in equilibrium if buyers believed plums accounted for:
A. 11.11% of the market. B. 22.22% of the market. C. 33.33% of the market. D. 66.67% of the market.