For two goods, X and Y, to be classified as substitutes, it must be the case that:
A. consumers tend to purchase both items together.
B. when the price of X rises, the demand for Y increases.
C. X and Y are identical.
D. when the price of X rises, the demand for Y decreases.
Answer: B
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Optimization in differences analyzes:
A) the total net benefits of the alternative that looks the most attractive. B) the change in the net benefits resulting from a shift from one alternative to another. C) only the costs of an alternative and not the benefits. D) the total net benefits of different alternatives.
If consumption is defined as C = 1,350 + 0.6Y, then the marginal propensity to consume is 0.6
Indicate whether the statement is true or false
All of the following shift the labor demand curve EXCEPT changes in
A) fringe benefits offered to employees. B) the demand for the final product. C) labor productivity. D) prices of related factors.
A decrease in quantity demanded
a. illustrated by a movement downward and to the right along a demand curve. b. illustrated by a movement upward and to the left along a demand curve. c. shifts the demand curve to the left d. shifts the demand curve to the right.