If the demand for a good increases when the price of another good increases, then these goods are:
a. complementary in consumption.
b. complementary in production.
c. substitute in production.
d. substitute in consumption.
e. neither substitutes nor complementary.
QUESTION 2Suppose that X and Y are substitute goods. If the price of good X increases, we can expect:
a. the demand for good X to shift to the left.
b. an upward movement along the demand curve for good Y.
c. the demand curve for good Y to shift to the right.
d. a downward movement along the demand curve for good Y.
e. the demand curve for good Y to shift to the left.
QUESTION 3Two goods that are substitutes are:
a. bacon and eggs.
b. camera and film.
c. tennis racket and tennis balls.
d. movie theater tickets and video rentals.
e. coffee and cream.
QUESTION 4Which of the following pairs of goods would be considered substitutes?
a. Milk and cookies.
b. Tires and automobiles.
c. Ink and pens.
d. Coca-Cola and Pepsi.
e. Computers and computer software.
QUESTION 5If two goods are substitutes in consumption, a(n):
a. decrease in the price of one product will cause an increase in the demand for the other product.
b. decrease in the price of one product will cause a decrease in the demand for the other product.
c. increase in the price of one product will cause an increase in the supply of the other product.
d. increase in the price of one product will cause a decrease in the supply of the other product.
e. increase in the price of one product will cause a decrease in the demand for the other product.
QUESTION 6If a decrease in the price of good Y causes the demand for good Z to decrease, this indicates that:
a. Y and Z are complements.
b. Y and Z are substitutes.
c. Y and Z are unrelated.
d. Y is a normal good and Z is an inferior good.
QUESTION 7If the price of coffee decreases, the demand curve for tea (a substitute good) will:
a. remain unchanged. b. shift to the right.
c. shift to the left. d. do none of these
QUESTION 8Which of the following goods are most likely to be substitutes?
a. potato chips and chip dip b. bread and peanut butter
c. ketchup and French fries d. bananas and apples
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