An increase in the price of Heinz ketchup is likely to cause:
A. an increase in the demand for Hunt's ketchup, due to a change in preferences.
B. an increase in the demand for Hunt's ketchup, due to a change in the price of a substitute good.
C. a decrease in the demand for Hunt's ketchup, due to a change in preferences.
D. an increase in the demand for Hunt's ketchup, due to a change in the price of a complementary good.
B. an increase in the demand for Hunt's ketchup, due to a change in the price of a substitute good.
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If Dawson prefers pizza to hamburgers and hamburgers to hot dogs, then if preferences are transitive
A) she must prefer pizza to hot dogs. B) she could prefer hamburgers to pizza on some occasions but not hot dogs to pizza. C) she could prefer hot dogs to pizza on some occasions but not hamburgers to hot dogs. D) at times she could be indifferent among the three items.
The longer any price change lasts over time, the
A) more difficult it is to alter quantity demanded. B) the more quickly quantity demanded will return to its original level. C) the longer the short-run equilibrium will continue to be the short-run equilibrium. D) more quantity demanded will change.