We observe that people buy less steak and more potatoes when the price of steak relative to potatoes increases. This indicates that steak and potatoes are

Used car dealers that provide warranties on the cars they sell are addressing the:

A. monopoly problem. B. problem of people preferring foreign cars. C. free rider problem of buyers preferring new versus used cars. D. lemons problem.

According to the law of demand, when the price of gas rises, Question 26 options:

A. people will drive more. B. oil refining companies record financial losses. C. car sales increase. D. people decrease the quantity of gas demanded, perhaps by driving less.