Resource X is necessary to the production of good Y. If the price of resource X falls, the equilibrium price of Y will ______________ and the equilibrium quantity of Y will
A) rise; rise.
B) fall; fall.
C) fall; rise.
D) rise; fall.
C
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The objective of bank management is to
a. maximize stockholders' profits by making risky investments and giving loans to borrowers who will pay the highest interest rates. b. refuse to make risky loans and make loans only to the safest borrowers. c. invest in U.S. government securities and make loans only to established businesses. d. strike the appropriate balance between the attraction of bank profits and the need for bank safety.
The price of a can of soft drink is $1.25 and the marginal utility of the second can consumed is 10 utils. The marginal utility of the third hotdog is 4 utils. You should only consume the third hotdog if the price of the hotdog is less than or equal to
A) $0.41. B) $0.625. C) $0.25. D) $0.50.