An increase in the price of oil causes
a. a decrease in the demand for substitute goods.
b. an increase in the price of substitute goods.
c. an increase in the demand for complementary goods.
d. an increase in the price of complementary goods.
b. an increase in the price of substitute goods.
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Let's try to understand Alicia's strong dislike for gambling by applying utility analysis to it. Her dislike makes sense only if
a. the sum of the marginal utility she derives from an anticipated win and the negative marginal utility associated with an anticipated loss is negative b. the sum of the marginal utility she derives from an anticipated win and the negative marginal utility associated with an anticipated loss is positive c. she derives zero consumer surplus from a win and suffers a loss of consumer surplus from a loss d. she continues to bet until she loses e. the law of diminishing marginal utility cannot be applied to gambling
The budget deficit or surplus is:
A. easy to calculate since there is only one valid method for computing it. B. easy to calculate since economists agree on how it should be computed. C. hard to calculate even though there is only one valid method for computing it. D. hard to calculate since economists disagree on how it should be computed.