The number of cases of Coca-Cola bought increased by 50 percent when the price of pretzels declined by 10 percent. Assuming other factors are held constant, Coca-Cola and pretzels are classified as:

According to this Application, if you earn a salary of $80,000 in the first year and all prices decrease by half in the next 5 years, what will your nominal annual salary be in 5 years?

A) $8,000 B) $10,000 C) $20,000 D) $40,000

Taxes impact incentives to use resources since they distort relative prices

Indicate whether the statement is true or false