Suppose a decrease of 7% in the price of lobster increases the consumption of lobster by 18%. Such a price decrease will induce households to spend
A. less of their income on lobster.
B. less on products that are complementary with lobster.
C. more of their income on lobster.
D. the same amount on lobster as before.
Answer: C
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Which of the following does not describe a characteristic of short-term economic fluctuations?
A. Expansions and recessions are irregular in length and severity. B. Durable-goods industries are less sensitive to short-term fluctuations than service and non-durable industries. C. Expansions and recessions are felt throughout the economy. D. The unemployment rate rises during recessions.
Use the figure below to answer the following question. 
The case of substitute goods is represented by figure
A. 1. B. 2. C. 3. D. 4.
The quantity demanded of an input normally rises as its price rises
a. True b. False Indicate whether the statement is true or false
The demand for a product is likely to be more elastic:
A. the smaller the share of the total budget spent on the product. B. when more complementary products are available. C. in the short run than in the long run. D. when more good substitutes for the product are available.