Farmers can produce wheat and/or rice. What will happen in the wheat market if there is an increase in the price of rice?
a. Wheat supply will increase. b. Wheat supply will decrease.
c. Wheat demand will increase. d. Wheat demand will decrease.
b
You might also like to view...
Product differentiation:
a. is carried out by both perfectly competitive and monopolistically competitive firms. b. is succesful if a firm faces a relatively inelastic demand curve. c. does not allow the firm to raise its price without losing all of its customers. d. cannot be accomplished through advertising or trivial product changes. e. if carried out successfully enables the firms to enjoy market power.
A depreciation of the U.S. real exchange rate induces U.S. consumers to buy
a. fewer domestic goods and fewer foreign goods. b. more domestic goods and fewer foreign goods. c. fewer domestic goods and more foreign goods. d. more domestic goods and more foreign goods.