If peanut butter and jelly are complements, but peanut butter and tuna fish are substitutes,
a. an increase in the price of peanut butter will increase the demand for jelly.
b. an increase in the price of peanut butter will decrease the demand for jelly.
c. an increase in the price of peanut butter will decrease the demand for tuna fish.
d. a decrease in the price of peanut butter will increase the demand for tuna fish.
d
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In a competitive market, the quantity of a product produced and the price of the product are determined by
a. buyers. b. sellers. c. both buyers and sellers. d. None of the above is correct.
Bart and Lisa are both optimizing consumers in the markets for shirts and hats, where they pay $100 for a shirt and $50 for a hat. Bart buys 8 shirts and 4 hats, while Lisa buys 6 shirts and 12 hats. From this information, we can infer that Bart's marginal rate of substitution is _____ hats per shirt, while Lisa's is _____.
a. 4, 2 b. 2, 1 c. 2, 2 d. 4, 1