Which of the following factors will decrease the current demand for a product?

A. An expected increase in the future price of the product
B. A decrease in the current price of a substitute product
C. A decrease in the current price of a complementary product
D. An increase in the current price of a substitute product

Answer: B

Economics

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The table above shows some data that describe Tom's T-Shirts' total product when Tom has 1 sewing machine

An increase in the number of workers from 1 to 2 a day increases average product of labor from ________ T shirts per worker and marginal product of labor is ________ T shirts per worker. A) 10 to 11; 22 B) 10 to 22; 12 C) 10 to 22; 22 D) 10 to 11; 12

Economics

If a firm faces perfectly competitive product and factor markets and the marginal product of labor and capital are 4 and 9, respectively, while the wage rate is $2 and the rental rate on capital is $4, the firm should

A) use relatively more capital. B) use relatively less capital. C) increase all inputs proportionately. D) decrease all inputs proportionately.

Economics