In the above figure, if the two goods A and B, are complements, which of the following is TRUE?
A) The shift from D0 to D1 for good B leads to a shift from S0 to S1 for good A.
B) The shift from S0 to S1 for good A leads to the shift from D0 to D1 for good B.
C) The law of demand is violated in both markets.
D) The cross elasticity of demand between them is positive.
B
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After Suzie, owner of Suzie's Sweet Shop, hires her 8th worker the average product of labor declines. Which of the following statements must be true?
A) The average product of labor is negative. B) The marginal product of the 8th worker is negative. C) The marginal product of the 8th worker is less than the average product of labor before the 8th worker was hired. D) Suzie's profits would be greater if she did not hire the 8th worker.
If consumers enjoy an increase in wealth due to stock market gains, which of the following combinations of events will mostly likely take place?
a. A downward shift of the aggregate expenditure line and a rightward shift of the AD curve b. A downward shift of the aggregate expenditure line and a rightward shift of the AD curve. c. An upward shift of the aggregate expenditure line and a leftward shift of the AD curve. d. An upward shift of the aggregate expenditure line and a rightward shift of the AD curve. e. An upward shift of the aggregate expenditure line and no shift in the AD curve.