A consumer is making purchases of products Alpha and Beta such that the marginal utility of product Alpha is 30 and the marginal utility of product Beta is 40. The price of product Alpha is $5 and the price of product Beta is $10. The utility-maximizing rule suggests that this consumer should:

If Pepsi decided to raise its price, you would expect the price of Coca Cola

A) to fall. B) to raise. C) Their prices should have no relationship because Pepsi and Coca Cola are not related. D) None of the above answers are correct.

In 2002, the United States placed higher tariffs on imports of steel. According to the open-economy macroeconomic model this policy should have

a. reduced imports into the United States and made U.S. net exports rise. b. reduced imports into the United States and made the net supply of dollars in the foreign exchange market shift right. c. reduced imports of steel into the United States, but reduced U.S. exports of other goods by an equal amount. d. reduced imports of steel into the United States and increased U.S. exports of other goods by an equal amount.