Refer to the figure below. The dominant strategy for Row Resorts is to ________, and the dominant strategy for Column Cruises is to ________.

Pepsi and pizza are normal goods. When the price of pizza rises, the substitution effect causes Pepsi to be relatively

a. more expensive, so the consumer buys more Pepsi. b. more expensive, so the consumer buys less Pepsi. c. less expensive, so the consumer buys more Pepsi. d. less expensive, so the consumer buys less Pepsi.

All else being equal, if the prospect of a recession leads the Federal Reserve to ease monetary policy, the equilibrium value of the exchange rate for the U.S. dollar will:

A. either rise or fall depending on whether the supply or demand for dollars changes more. B. fall. C. remain fixed. D. rise.