If an increase in the price of peanut butter causes a decline in the demand for jelly, then
a. the goods are substitutes
b. jelly is an inferior good
c. the goods are complements
d. both goods are inelastic
e. peanut butter is an inferior good
C
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A firm has explicit costs of $110,000 and total revenue of $120,000. Which of the following is true about the firm?
A) The firm might be making an economic profit but we need more information about implicit costs to know for sure. B) The firm is definitely making an economic profit because it must be minimizing its opportunity cost. C) The firm is incurring an economic loss if implicit costs are $10,000. D) The firm is making a normal profit if implicit costs are $0. E) The firm may be making an economic profit but only if implicit costs are negative.
Macroeconomic topics do not generally include: a. inflation
b. aggregate demand. c. government spending and taxation. d. the production decisions of individual firms.