If two goods are substitutes, then a(n)
a. increase in the demand for one of them will cause its price to fall
b. increase the supply of one of them will cause its price to rise
c. increase in the price of one of them will cause the demand for the other to increase
d. increase in the price of one of them will cause the supply of the other to increase
e. decrease in the price of one of them will cause the demand for the other to increase
C
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Suppose real disposable income increases by $1,000. Given this information, we know that
A) consumption will generally increase by more than $1,000. B) saving will generally increase by exactly $1,000. C) consumption will generally increase by exactly $1,000. D) consumption will generally increase by less than $1,000.
The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. If the market is competitive and unregulated, how much steel will be produced?
A) 0 tons B) 2 tons C) 4 tons D) 8 tons