Suppose a concert by Lady Gaga and a basketball game played by the L.A. Lakers are substitutes, then which of the following is TRUE?

A) If the price of a ticket to a Lakers game increases, then the demand for Lady Gaga tickets will fall.
B) If the price of a ticket to a Lakers game decreases, the quantity of Lakers tickets demanded will increase.
C) If the price of a ticket to a Lakers game increases, then the demand for Lady Gaga tickets will remain unchanged.
D) The price of a ticket to a Lakers game will always equal the price of a ticket to a Lady Gaga concert.

B

Economics

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Explain the difference between consumption and capital goods

What will be an ideal response?

Economics

Refer to Figure 3-3. The figure above shows the supply and demand curves for two markets: the market for original Michelangelo sculptures and the market for Ray Ban sunglasses. Which graph most likely represents which market?

A) Graph A represents the market for original Michelangelo sculptures and Graph B represents the market for Ray Ban sunglasses. B) Graph B represents both the market for original Michelangelo sculptures and Ray Ban sunglasses. C) Graph B represents the market for original Michelangelo sculptures and Graph A represents the market for Ray Ban sunglasses. D) Graph A represents both the market for original Michelangelo sculptures and Ray Ban sunglasses.

Economics