If products C and D are close substitutes, an increase in the price of C will

A. tend to cause the price of D to decrease.
B. shift the demand curve for D to the right.
C. shift the demand curves for both products to the right.
D. shift the demand curve for C to the left and the demand curve for D to the right.

Answer: B

Economics

You might also like to view...

If the Fed lowers the interest rate in the U.S., ________

A) the U.S. net exports will decrease B) the demand curve for dollars will shift to the left C) the demand curve for dollars will shift to the right D) the real exchange rate of the U.S. will appreciate

Economics

An income tax system is ________ if marginal tax rates increase as income increases

A) efficient B) progressive C) equitable D) regressive

Economics