Related to the Economics in Practice on page 51: The Amazon Kindle and the electronic textbooks available for the Kindle are complementary goods. Electronic textbooks and traditional, hard copy textbooks are substitute products. If the price of traditional, hard-copy textbooks increases,
A. the quantity of electronic textbooks demanded increases and demand for traditional, hard-copy textbooks decreases.
B. the quantity of traditional, hard-copy textbooks demanded decreases and demand for electronic textbooks increases.
C. the quantity of electronic textbooks demanded increases and demand for the Kindle increases.
D. demand for traditional, hard-copy textbooks decreases and demand for electronic textbooks increases.
Answer: B
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People on a fixed income are adversely affected by inflation.
a. true b. false
If there is an increased interest in U.S. goods by Indian consumers, which of the following will happen in the market for Indian rupees?
a. A rightward shift of the supply curve, a depreciation of the rupee, and a larger number of rupees traded b. A rightward shift of the demand curve, a depreciation of the rupee, and a smaller number of rupees traded c. A rightward shift of the demand curve, an appreciation of the rupee, and a larger number of rupees traded d. A leftward shift of the demand curve, a depreciation of the rupee, and a smaller number of rupees traded e. A leftward shift of the supply curve, an appreciation of the rupee, and a smaller number of rupees traded.