If a 10 percent increase in the price of one good results in no change in the quantity demanded of another good, then it can be concluded that the two goods are:
A. Complementary goods
B. Substitute goods
C. Independent goods
D. Normal goods
C. Independent goods
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The government buts new weapons systems. The manufacturers of weapons pay their employees. The employees spend this money on goods and services. The firms from which the employees buy the goods and services pay their employees. This sequence of events illustrates
a) the accelerator effect. b) the multiplier effect. c) the chain effect. d) the bandwagon effect.
Two of the most important factors that influence total factor productivity are
A) the stock of knowledge that the world possesses and the associated level of technology. B) the quantity and quality of labor available in an economy. C) capital accumulation and the total level of investment in an economy. D) population growth rates and the geographic location of the population.