4. Basil and celery leaves are substitutes in making noodle soups. A rare drought destroyed agood portion of local celery supply, ceteris paribus, we haveA. the price of both celery and basil will increase.B. the price of both celery and basil will fall.C. the price of celery will increase, and the price of basil will fall.D. the price of celery will fall, and the price of basil will increase.5. When the nominal price of unleaded gasoline increases, the real cost of buying gasolineA. the real cost of buying gasoline must increase.B. must decrease because income increases over time.C. the real cost of buying gasoline remains unchanged.D. might higher, lower or unchanged depending on changes in income.E. might be higher, lower or unchanged depending on changes in CPI.

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4. Basil and celery leaves are substitutes in making noodle soups. A rare drought destroyed a good portion of local celery supply, ceteris paribus, we have A. the price of both celery and basil will increase. B. the price of both celery and basil will fall. C. the price of celery will increase, and the price of basil will fall. D. the price of celery will fall, and the price of basil will increase.

4. Basil and celery leaves are substitutes in making noodle soups. A rare drought destroyed a good portion of local celery supply, ceteris paribus, we have A. the price of both celery and basil will increase. B. the price of both celery and basil will fall. C. the price of celery will increase, and the price of basil will fall. D. the price of celery will fall, and the price of basil will increase.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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