Assuming coffee and tea are substitutes, a rise in the price of coffee will have which of the following effects on the market for tea?
a. A movement up along the tea demand curve.
b. A movement down along the tea demand curve.
c. A leftward shift in the tea demand curve.
d. A rightward shift in the tea demand curve.
d
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As used in the text, the "composite good" refers to:
a. large purchases that cannot be incrementally divided b. an abstraction requiring more than a three-dimensional graph c. income not spent on good X is two-dimensional graphical presentation d. the notion that consumers cannot be modeled graphically e. none of the above
The key reason that the bursting of the tech-stock bubble of the late 1990s had a mild impact on the macroeconomy is ________
A) rapid intervention by the central bank averted economic catastrophe B) the increase in tech-stock prices was driven by the economic fundamental of technological progress C) the technology sector is a rather small portion of the aggregate economy D) tech-stock prices had not been much influenced by credit availability