We say that goods are substitutes when they:
A. serve similar-enough purposes that a consumer might purchase one in place of the other.
B. are consumed together, so that purchasing one will make a consumer more likely to purchase the other.
C. can replace something consumers typically purchase at a significantly lower price.
D. change a consumer's preferences for a good or service.
A. serve similar-enough purposes that a consumer might purchase one in place of the other.
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On any given day we know a salesman can earn $0 with a 40% probability, $100 with a 20% probability or $300 with 40% probability. His expected earnings equal
A) $0. B) $140. C) $300. D) It cannot be determined from the available information.
Finding an apartment in New York City is difficult. People even scan the obituaries in the hopes of finding an apartment. Provide an economic explanation for this
What will be an ideal response?