Two goods are considered substitutes only if a(n)
a. decrease in the demand for one leads to a decrease in the supply of the other
b. increase in the demand for one leads to a decrease in the supply of the other
c. increase in the price of one leads to an increase in the demand for the other
d. decrease in the price of one leads to an increase in the demand for the other
e. decrease in the supply of one leads producers to switch to production of the other
C
You might also like to view...
The current account is
A. an accounting statement that includes all spending flows across a nation's border, including the purchase of assets. B. an accounting statement that includes all spending flows across a nation's border for the purchase of goods and services. C. equal to value of a country's exports. D. equal to value of a country's imports.
The indifference curves for left shoes and right shoes would most likely be
A) upward sloping and concave to the origin. B) downward sloping and convex to the origin. C) downward sloping and straight lines. D) L-shaped.