Which if the following is the best example of derived demand?
A. Janice got a Samsung Galaxy Tab for her birthday, and now her best friend Tamika wants one for her birthday.
B. The demand for movie theater ushers increases when more consumers choose to go to movie theaters.
C. When the price of Honda Accords increased, the demand for Nissan Altimas went up.
D. More peanut butter is demanded as the price of strawberry jam falls.
Answer: B
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Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss
As shown in Exhibit 3A-2, if the quantity supplied of good X per year is Q1, the result is:
A. deadweight loss. B. efficiency. C. overproduction. D. equilibrium.
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower