Suppose most consumers who eat hotdogs also use mustard, a complementary good. If the price of hotdogs rises, which is most likely to happen?
A) The demand curve for mustard will shift right.
B) The demand curve for hotdogs will shift right.
C) The demand curve for mustard will shift left.
D) The demand for hotdogs will fall.
C
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The actual budget deficit is equal to the
A) structural deficit minus the cyclical deficit. B) structural deficit plus the cyclical deficit. C) cyclical deficit minus the structural deficit. D) cyclical deficit. E) structural deficit.
Suppose the growth rate of the money supply is 5% per year and the velocity of money is constant. In this case:
A. the difference between inflation and the real growth rate must be 5%. B. inflation and the real growth rate must both be 5%. C. the sum of inflation and the real growth rate must be 5%. D. neither the inflation rate nor the real growth rate can exceed 5%.