We know that goods A and B are related goods, because when the price of A increases
A. the demand curve for B will shift to the left, because A and B are complementary goods.
B. the quantity of B demanded will shift along its demand curve, because A and B are complementary goods.
C. the demand curve for B will shift to the right, because A and B are complementary goods.
D. the demand curve for B will remain unchanged because A and B are substitute goods.
Answer: A
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A social system in which rights are clearly defined and participants are free to exchange as they choose will tend to allocate resources to
A) their most efficient uses. B) their most highly valued uses. C) uses on which the highest monetary value is placed. D) uses which maximize social welfare. E) uses which produce the greatest good for the greatest member.
If people believe that prices are going to be higher in the future then they are today, they will
a. wait until the future to purchase the things they wand b. decrease their demand now c. increase their demand now d. increase their supply now e. save more today so they have the income to buy more in the future
If one U.S. dollar = 11.76 Mexican pesos [Ps], then the reciprocal exchange rate is:
a. 1 Ps = $11.76. b. $1 = Ps 3.92. c. $1 = Ps 0.008. d. $1 = Ps 0.085. e. 1 Ps = $0.085.
You recently took the car to the mechanic to fix its engine. The mechanic had quoted you a total price for the work of $1000, and you had decided to go ahead with the work. Nevertheless, when you go to pick up the car he tells you that in order to complete the job he needs to buy another part adding about $200 extra to the cost of fixing the car. According to the cost-benefit rule you should pay the extra money to finish the job only if the benefits of using the car are greater or equal to
A. $200. B. 0. C. $1,200. D. $1,000.