Assuming that hamburgers and hot dogs are substitutes, an increase in the price of hamburgers, other things being equal, results in a:
a. rightward shift in the demand curve for hot dogs.
b. leftward shift in the demand curve for hamburgers.
c. rightward shift in the demand curve for hamburgers.
d. leftward shift in the demand curve for hot dogs.
a
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Suppose the economy consists of two distinct groups: wage earners and goods sellers. If the price level increases by 30 percent and real wages increase by 30 percent,
a. there will be no redistribution of purchasing power between goods sellers and wage earners b. purchasing power will be redistributed from wage earners to goods sellers c. purchasing power will be redistributed from goods sellers to wage earners d. nominal wages will increase by 90 percent e. nominal wages will decrease by 60 percent
Public policy responses to monopolies:
A. always have more benefits than costs to society. B. always have more costs than benefits to society. C. never benefit society in the end. D. could aim to break up existing monopolies.