If the quantity of Arizona green teas demanded falls from 4.0 million to 3.0 million as the price of Lipton green teas falls from $2.70 to $2.50, Arizona's teas and Lipton's teas are:
A. luxuries.
B. inferior goods.
C. substitutes.
D. complements.
Answer: C
You might also like to view...
A price ceiling
A) is an illegal price. B) is the price that exists in a black market. C) is the maximum price that can legally be charged. D) Both answers A and B are correct. E) Both answers B and C are correct.
Economists usually believe that:
A. competition encourages innovation. B. innovation encourages competition. C. innovation leads to market power and should be regulated. D. market power leads to innovation.
This graph depicts a tax being imposed, causing demand to shift from D1 to D2. The distance AC in the graph shown represents all of the following except the:
A. amount of the tax.
B. difference between what the consumer pays and what the seller receives.
C. "tax wedge."
D. total tax revenue generated for the government by imposing the tax.
If the quantity of loanable funds supplied exceeds the quantity of loanable funds demanded,
a. there is a surplus and the interest rate is above the equilibrium level. b. there is a surplus and the interest rate is below the equilibrium level. c. there is a shortage and the interest rate is above the equilibrium level. d. there is a shortage and the interest rate is below the equilibrium level.