Assume that eggnog and cookies are complements. If the price of eggnog goes up, what happens to the demand for cookies?

a. Demand for cookies increases.
b. Demand for cookies decreases.
c. Demand for cookies remains unchanged.
d. The shift in demand will depend on the original price of cookies.

b

Economics

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Suppose that in the free market, where the supply of the foreign currency is equal to demand for that currency, the peso-dollar exchange rate is 4 pesos = $1

Assume the central bank sets an official exchange rate at 3 pesos = $1, we can say that in the official market the dollar is A) overvalued. B) undervalued. C) appreciated. D) None of the above.

Economics

If workers become more productive as a result of a new technology, the demand for these workers will decrease because the firm will not need to hire as many

Indicate whether the statement is true or false

Economics