The management of firm A observed that every time there is an increase in the price charged by firm B, the level of sales of firm A declines. But when firm C increases its price, the level of sales of firm A increases. From this we can conclude that
A) firms A and B produce substitutes in consumption.
B) firms A and C produce substitutes in consumption.
C) firms A and B produce unrelated in consumption products.
D) firms A and C produce unrelated in consumption products.
E) None of the above is correct.
Correct Answer:
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Q2: A decline in the demand will cause
Q3: Assume that corn and wheat are substitutes
Q4: If we notice that an increase in
Q5: If two goods are complements in consumption,
Q6: If both supply and demand increase at
Q8: The law of demand states that
A) as
Q9: A good is normal if a rise
Q10: Which of the following statements is incorrect?
A)
Q11: In which scenario will both the equilibrium
Q12: If supply increases while demand decreases
A) the
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