"Because chips and salsa are complements, an increase in the price of chips will cause the demand for salsa to decrease
This initial shift in demand for chips results in a higher price for chips; this higher price will cause the demand curve for chips to shift to the right." Which of the following correctly comments on this statement?
A) The statement is false because one cannot assume that chips and salsa are complements for all consumers.
B) The statement is false because a change in the price of chips would not change the demand for chips.
C) The statement will be true if consumer tastes for chips and salsa do not change.
D) The statement is false because salsa is an inferior good; chips are normal goods.
B
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The tariff imposed to punish a foreign discriminating monopolist is called:
a. antidumping duty. b. a subsidy. c. punitive damages. d. a fine.
U.S. Treasury securities
A) are considered risk free because their prices never change. B) have been defaulted on several time in U.S. history. C) are considered default-risk-free instruments. D) have a large default risk premium.