The price of A falls by 2 percent, and the quantity demanded of A increases by 2 percent. Meanwhile, the quantity demanded of B increases by 2 percent too. We would conclude that
A. demand for A is elastic, and A and B are substitutes.
B. demand for A is unit-elastic, and A and B are complements.
C. demand for A is inelastic, and A and B are unrelated.
D. demand for A is elastic, and A and B are complements.
Answer: B
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When the Fed decreases the money stock, the money supply curve shifts to the ________ and the interest rate ________, everything else held constant
A) right; rises B) right; falls C) left; falls D) left; rises
Under monopolistic competition, firms have prices ________ marginal cost and long-run profits that are ________ (net of fixed costs).
A. above; positive B. above; close to zero C. below; positive D. below; close to zero
A type of investment fund that makes long-term investments in companies that are not publicly traded is called a
A) private equity fund. B) hedge fund. C) sovereign wealth fund. D) brokerage fund.
If you lost 50 percent on $100 worth of stock in a 3x margin account, then you would lose:
A. $50. B. $150. C. $300. D. $600.