If the price of orchids falls, the substitution effect due to the price change will cause
A) an increase in the quantity of orchids demanded.
B) an increase in the demand for roses, a substitute for orchids.
C) an increase in the quantity of orchids supplied.
D) an increase in the demand for orchids.
A
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In international financial transactions, what are the only two things that individuals and firms can exchange?
A. Currency and real assets. B. Services and manufactured goods. C. Preexisting assets and currently produced goods and services. D. Currency and currently produced goods and services.
Which of the following ismostlikely to increase the supply of corn?
A. The farm worker's union successfully negotiates a pay increase for corn harvest workers. B. The Surgeon General announces that eating corn bread contributes to baldness in men. C. Congress and the President eliminate subsidies formerly paid to corn farmers. D. Farmers that grow soybeans can also grow corn, and the price of soybeans drops by 75 percent.