Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Question
Chapter 12, Problem 5MC
To determine
Acquiring complementary good.
Expert Solution & Answer
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Students have asked these similar questions
computers and software are complements, then
A) other things being equal, a fall in the price of computers will increase the demand for
software and, the price of software will fall.
B) other things being equal, a rise in the price of computers will decrease the demand for
software and, the price of software will fall.
C) other things being equal, a fall in the price of computers will decrease the demand for
software and, the price of software will fall.
D) other things being equal, a rise in the price of software will increase the demand for
computers and, the price of computers will rise.
E) other things being equal, a fall in the price of software will decrease the demand for
computers and, the price of computers will fall.
For a particular good, 10% increase in price causes a 5% decrease in quantity demanded. Which of the following statements
is most likely applicable to this good?
a. The good is a luxury
b. The market for the good is broadly defined
c. there are many close substitutes for this good
d. The relevant time horizon is long
If the cross-price elasticity of demand for goods X and Y is zero, it would imply that
a.
price elasticity of demand for X is zero.
b.
price elasticity of demand for Y is zero.
c.
X and Y are unrelated.
d.
X and Y are substitutes.
e.
X and Y are complements.
Chapter 12 Solutions
Managerial Economics: A Problem Solving Approach
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Similar questions
- A reduction in the price of Y from OMR 12 to OMR 8 causes a growth in the quantity of C demanded from 900 to 1,100 units. Y and C are a. complements. b. substitutes. c. normal goods. d. inferior goods Clear my choicearrow_forwardFor a particular good, a 2 percent increase in price causes a 12 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good? A. the good is a luxury B. the market for the good is broadly defined C. the relevant time horizon is short D. there are no good substitutes for this goodarrow_forwardPlease correct answer and don't use hand ratingarrow_forward
- If the demand curve for Good A shifts leftward when the price of Good B decreases, these two goods are _________. Select one: a. complements b. inferior c. normal d. substitutesarrow_forwardFor a particular good, a 10 percent increase in price causes a 3 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good? a. The relevant time horizon is short. b. The good is a luxury. c. The market for the good is narrowly defined. d. There are many close substitutes for this good. Selected Answer: C. Carrow_forwardCoffee and cream are complements. If the price of coffee increases, this will cause: a) a decrease in demand- a leftward shift of the demand curve-- for coffee. b) an increase in demand- a rightward shift of the demand curve-- for cream. c) an upward movement (decrease in quantity demanded) along the demand curve for coffee. d)a downward movement ( increase in quantity demanded) along the demand curve for cream. Is the answer C?arrow_forward
- Gasoline and tires are complementary goods. When the price of gasoline increases the ________for tires_________. quantity demanded, decreases demand, decreases quantity demanded, increases demand, increasesarrow_forwardIf products A and B are substitutes, products B and C are complements and the markets for products A and B are unrelated, which one of the following statements regarding the markets for products A, B and C is true? a) A decrease in the price of product A will result in an increase in the demand for product B b) A decrease in the price of product A will result in an increase in the demand for product C c) An increase in the price of product B will result in an increase in the demand for product C d) An increase in the price of product B will result in an increase in the demand for product Aarrow_forwardIf coffee and cream are complements, an increase in the price of coffee will cause the demand for cream to increase. the demand for cream to fall. the demand for coffee to fall.arrow_forward
- If the price of Product A increases and this results in a decrease in the demand for Product B, then Products A and B are normal. O inferior, O complements. O substitutes. O direct substitutesarrow_forwardd e farrow_forwardAn increase in demand for a good may be caused by a decrease in the price of * the good. a complement. a substitute. an unrelated product.arrow_forward
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