If sneakers and hiking boots are substitutes and the price of sneakers falls, what will happen?
A. Demand for sneakers will rise.
B. Demand for sneakers will fall.
C. Demand for hiking boots will rise.
D. Demand for hiking boots will fall.
D. Demand for hiking boots will fall.
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If the reserve ratio is designated by "r," the amount of deposits a bank can hold as excess reserves is equal to 1 / (1 - r)
Indicate whether the statement is true or false
If bargaining is costless, the assignment of property rights for an externality
a. has no impact on the possibility of an efficient outcome and no distributional impact. b. has no impact on the possibility of an efficient outcome but does have a distributional impact. c. does have an impact on the possibility of an efficient outcome but has no distributional impact. d. does have an impact on the possibility of an efficient outcome and does have a distributional impact.
An increase in the price of a close substitute for good A will:
a. increase demand, increase price and increase the quantity exchanged. b. increase demand, increase price and decrease the quantity exchanged. c. increase supply, increase price and increase the quantity exchanged. d. decrease demand, decrease price and decrease the quantity exchanged.
In the above figure, what is the AVERAGE variable cost of producing 5 units of output?
A. $20 B. $80 C. $60 D. $12 E. $40