If goods A and B are complements, and if the price of good B rises, how will this affect the market equilibrium for good A?
a. Price and quantity will both fall.
b. Price will rise and quantity will fall.
c. Price and quantity will both rise.
d. Price will fall and quantity will rise.
a
Economics
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The domestic demand curve, domestic supply curve, and world supply curves for a good are given in the above figure. All the curves are linear. Initially, the country allows imports. Then imports are banned
Calculate how consumer and producer surplus change because of the ban. Is the country better off with the ban on imports? Why?
Economics
The marginal revenue product of capital inputs does not provide complete information about optimal use because capital is:
A) money. B) not an input. C) an output as well as an input. D) durable. E) all of the above
Economics