Suppose milk and chocolate syrup are complements (mixed together they make chocolate milk). If the price of milk increased by exactly 25%, the economic way of thinking suggests
A) the demand for milk would decrease.
B) the demand for chocolate syrup would decrease.
C) the demand for milk would decrease by exactly 25%.
D) the demand for chocolate syrup would decrease by exactly 25%.
B
Economics
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Refer to Figure 16-8. In the graph above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could Congress and the president use to move the economy to point C?
A) decrease government purchases B) increase income taxes C) sell Treasury bills D) increase government purchases
Economics
What to produce, how to produce, and for who to produce are the three fundamental economic questions
a. True b. False Indicate whether the statement is true or false
Economics