Given that meat and potatoes are complementary goods, if the price of meat decreases substantially, there would be:
A) an increase in the demand for potatoes.
B) an increase in the quantity of potatoes demanded.
C) a decrease in the demand for potatoes.
D) no change in the demand for potatoes.
Ans: A) an increase in the demand for potatoes.
Economics
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For a household in a (c,c') graph, the optimal consumption bundle is
A) to the left of the endowment point. B) to the right of the endowment point. C) on the endowment point. D) dependent on other factors.
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A) are not a major export for most of Latin America. B) are highly valued relative to manufactured goods. C) have benefited from increased demand from growing world economies. D) are not subject to business cycles.
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