We say that goods are substitutes when they:
A. change a consumer's preferences for a good or service.
B. can replace something consumers typically purchase at a significantly lower price.
C. are consumed together, so that purchasing one will make a consumer more likely to purchase the other.
D. serve similar-enough purposes that a consumer might purchase one in place of the other.
Answer: D
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What would be the price of a perpetuity bond that has a $100 interest payment and a 4% yield?
a) $1,000 b) $2,000 c) $2,500 d) $4,000
Menell's study showed that in terms of effectiveness,
A) mandatory separation of recyclables was best, followed by curbside charges and finally refundable deposits. B) mandatory separation of recyclables was best, followed by refundable deposits and finally curbside charges. C) curbside charges were best, followed by refundable deposits and finally mandatory separation of recyclables. D) curbside charges were best, followed by mandatory separation of recyclables and finally refundable deposits. E) refundable deposits were best, followed by curbside charges and finally mandatory separation of recyclables.