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11. A likely example of complementary goods for most people would be
a. hamburgers and hot dogs.
b. lawnmowers and automobiles.
c. hamburgers and French fries.
d. Dr. Pepper and Pepsi.
12. A likely example of substitute goods for most people would be
a. peanut butter and jelly.
b. tennis balls and tennis rackets.
c. televisions and subscriptions to cable television services.
d. pencils and pens.
13. You love peanut butter. You hear on the news that 50 percent of the peanut crop in the South has been wiped out by drought, and that this will cause the price of peanuts to double by the end of the year. As a result,
a. your demand for peanut butter will increase, but not until the end of the year.
b. your demand for peanut butter increases today.
c. your demand for peanut butter decreases as you look for a substitute good.
d. you will wait for the price of jelly to change before altering your demand for peanut butter.
14. A downward-sloping demand curve reflects
a. the idea that the demand for the good in question is decreasing as time goes by.
b. the idea that there are fewer suppliers of the good as time goes by.
c. the idea that there exists a substitute for the good in question and the price of that substitute is decreasing.
d. the law of demand.

Figure 1

15. Refer to Figure 1. The movement from point A to point B on the graph would be caused by
a. an increase in price.
b. a decrease in price.
c. a decrease in the price of a substitute good.
d. an increase in income.

2007-10-09 16:43:56 · 2 answers · asked by miss_su_09 1 in Social Science Economics

2 answers

11. A
12. D
13. A
14. D
15. C
if the grahp is like this
|____\_____________
|_____\____________
|______\A__________
|_______\__________
|________\_________
|_________\________
|__________\_______
|___________\______
|____________\_____
|_____________\B___
|______________\___
|_______________\__
|________________\_
+--------------------------------------

2007-10-10 06:58:35 · answer #1 · answered by ame XY 1 · 0 0

11. Complementary goods are those that when you buy one, you will also buy the other. Figure it out.

12. Substitute goods are those that if there weren't any of one, you'd use the other instead. Figure it out.

13. THINK!!!!!! Read what a Substitute good is.

14. Poorly phrased question.

15. Well.... if I could see the figure, I'd have a clue.

2007-10-09 23:56:01 · answer #2 · answered by open4one 7 · 0 0

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