Two products are substitutes if:
A. an increase in the price of one causes buyers to demand less of the other.
B. an increase in the price of one causes buyers to demand more of the other.
C. a decrease in the price of one causes buyers to demand more of the other.
D. individuals consume the goods together.
B. an increase in the price of one causes buyers to demand more of the other.
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The European Central Bank (ECB) pursues a hybrid monetary policy strategy that has elements in common with the -targeting strategy previously used by the Bundesbank but also includes some elements of targeting
A) monetary; inflation B) inflation; monetary C) monetary; exchange rate D) monetary; nominal GDP
The Fed can determine how the money demand curve has shifted by
a. studying interest rate changes b. looking at the number of new loans c. studying unemployment compensation claims d. experimenting with changes in credit conditions e. checking the size of the federal budget deficit