Consider the market for peanut butter. If there is a decrease in the price of deli turkey slices (a substitute in consumption for peanut butter) along with a decrease in the price of peanut brittle (a substitute in production for peanut butter), the
A) equilibrium price of peanut butter definitely rises.
B) equilibrium quantity of peanut butter definitely increases.
C) equilibrium price of peanut butter might rise or fall.
D) equilibrium price of peanut butter definitely falls.
E) equilibrium quantity of peanut definitely decreases.
D
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Dumping is considered a practice that seriously harms domestic producers because
A) the quality of the dumped good is superior to that of the importing country. B) it allows the exporting country to use poor quality materials. C) it establishes a price that cannot be met by domestic producers. D) it discriminates between wealthy and poor countries.
In the foreign exchange market between dollars and pesos, the demand for dollars by Mexicans creates the supply of pesos
Indicate whether the statement is true or false