Refer to Scenario 3.2 below to answer the question(s) that follow.SCENARIO 3.2: Lettuce and spinach are substitutes. Lettuce and tomatoes are complements. Lettuce is a normal good. During the winter, about 20% of the lettuce crop was destroyed by flooding.Refer to Scenario 3.2. The floods that destroyed part of the lettuce crop would have caused
A. an increase in the quantity of tomatoes demanded.
B. a decrease in the demand for tomatoes.
C. an increase in the demand for tomatoes.
D. a decrease in the quantity of tomatoes demanded.
Answer: B
You might also like to view...
Suppose a new textbook sells for $100 at the college bookstore. The bookstore will buy it back at the end of the semester for $35, and sell then it used to somebody else for $75. Christina agrees to the deal, and pays $100
Once she buys the book, her sunk cost is A) $25. B) $35. C) $40 D) $65 E) $100.
What is the leverage implied by the bank balance sheet listed below? ? Assets ? ? Liabilities & Net Worth ? Reserves $280,000 ? Checking Deposits $2,800,000 Loans Outstanding $2,920,000 ? ? ? Total $3,200,000 ? Net Worth ? ? ? ? Stockholders’ Equity $400,000 ? ? ? Total $3,200,000
A. 2-to-1 B. 7-to-1 C. 8-to-1 D. 10-to-1
Over twenty years ago the city of Washington D.C. was facing a budgetary shortfall. In a plan to increase tax revenue the mayor and city council agreed to raise the excise tax on gasoline
Typically for goods like gasoline which are price inelastic this should have led to an increase in tax revenue. However, just the opposite happened – tax revenue plummeted! What could explain this seemingly paradoxical result?
The AR(p) model
A) is defined as Yt = ?0 + ?pYt-p + ut. B) represents Yt as a linear function of p of its lagged values. C) can be represented as follows: Yt = ?0 + ?1Xt + ?pYt-p + ut. D) can be written as Yt = ?0 + ?1Yt-1 + ut-p.