Log in
Economics
3
answers
0
watching
113
views

An increase in the price of product A will:

a. Reduce the demand for resources used in the production of A.

b. Increase the demand for complementary product C.

c. Increase the demand for substitute product B.

d. Reduce the demand for substitute product B.

Watch
3
answers
0
watching
113
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share
Already have an account? Log in
Share
Mahe Alam
Mahe AlamLv10
21 Jan 2021
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

Suppose an excise tax is imposed on product X. We expect this tax to:

a. increase the demand for complementary good Y and decrease the demand for substitute product Z.

b. decrease the demand for complementary good Y and increase the demand for substitute product Z.

c. increase the demands for both complementary good Y and substitute product Z.

d. decrease the demands for both complementary good Y and substitute product Z.

If the price of a good increases then, then

a. the demand for complementary goods will increase.

b. the demand for the good will increase.

c. the demand for substitute goods will increase.

d. the demand for the good will decrease.

 

What factors determine the elasticity of resource demand? What effect will each of the following have on the elasticity or the location of the demand for resource C, which is being used to produce commodity X? Where there is any uncertainty as to the outcome, specify the causes of that uncertainty.

(a) An increase in the demand for product X.

(b) An increase in the price of substitute resource D.

(c) An increase in the number of resources substitutable for C in producing X.

(d) A technological improvement in the capital equipment with which resource C is combined.

(e) A fall in the price of complementary resource E.

(f) A decline in the elasticity of demand for product X due to a decline in the competitiveness of product market X.

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in