Coffee and sugar are complements. If a poor sugar harvest leads to an increase in the price of sugar, there will also be
A) an increase in the price of coffee.
B) a decrease in the price of coffee.
C) a rightward shift in the demand curve for coffee.
D) a leftward shift of the supply curve of coffee.
B
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Refer to Figure 8A.1. Capital deepening occurs as long as
A) total saving exceeds depreciation. B) the level of Y is increasing. C) total saving and depreciation are equal. D) depreciation exceeds total saving.
Kristen has an income of $450 per year to spend on music CDs and movies on DVDs. Initially the price of a CD is $15 and the price of a DVD is $22.50. The indifference curves in the figure above (I1, I2, and I3 ) reflect Kristen's preferences
If the price of a DVD falls to $18, Kristen will buy A) 10 DVDs and 15 CDs per year. B) 15 DVDs and 12 CDs per year. C) 12.5 DVDs and 11 CDs per year. D) 13 DVDs and 15 CDs per year.