Trusts were groups of firms that acted together to raise prices above competitive levels

Which statement is an example of substitute goods affecting demand?

a. A bumper crop of cotton lowers the price of cotton clothing. Sales of silk shirts decrease. b. As laptop computer sales increase, so do the sales of computer cases. c. An automobile maker lays off thousands. Sales of electronic goods in that city fall. d. Hi-tech companies lure people to a region. Demand for housing rises.

If people expect the price of shorts to rise next month, the demand for shorts will

a. decrease now. b. increase now. c. stay the same now and increase next month. d. stay the same now and decrease next month. e. stay the same now and next month.