Which of the following causes an increase in demand for a normal good?

A) increase in the price of a substitute
B) increase in the price of a complement
C) decrease in price
D) decrease in income

Answer: A

Economics

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The figure above shows Ilene's budget line. The price of a can of cat food is $2. The price of a can of dog food

A) is $1.60. B) is $4.00. C) is $5.00. D) cannot be determined without more information.

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When there are barriers to entry, a profit-maximizing firm already in the industry can charge any price it wants, even in the long run

a. True b. False

Economics