We know that products G and H are related goods, because when the price of G increases,
A) the demand curve for H will shift to the right, because G and H are complementary goods.
B) the quantity of H demanded will shift along its demand curve, because G and H are complementary goods.
C) the demand curve for H will shift to the left, because G and H are complementary goods.
D) the demand curve for H will remain unchanged because G and H are substitute goods.
C
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Financing government expenditure through deficits rather than through taxes will lead to higher spending if
A) it results in crowding in. B) it results in crowding out. C) people are more aware of taxes than they are of deficits. D) people are more aware of deficits than they are of taxes.
The bargaining power of buyers increases if
A) the input in question is not a critical component of production. B) there are wide variations in the quality of inputs from supplier to supplier. C) there are many large buyers. D) the input in question has few substitutes.