Question

When the price of good A rises, the supply curve of good B shifts rightward. Which...

When the price of good A rises, the supply curve of good B shifts rightward. Which of the following statements are true? A) A and B are substitutes. B) A and B are complements. C) A and B are substitutes in production. D) A and B are complements in production. E) A is a factor used in the production of B.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

As the price of good A rises, rational consumer will consume less of good A and will shift to it's substitute so consumer will consumer more of good B ( which is substitute of good A) hence the supply curve of good B will shift Rightward.

For example if price of tea rises then consumer will shift to it's substitute which is coffee and hence he will purchase more of coffee, supply of coffee will increase (supply curve will shift to right)

Option B is correct

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1.   Which one of the following shifts the aggregate demand curve leftward? Select one: a. An...
1.   Which one of the following shifts the aggregate demand curve leftward? Select one: a. An increase in the wage rate. b. An increase in the price level. c. An increase in expected deflation. d. A decrease in taxes. e. A decrease in the interest rate. 2.   Consider an economy starting from a position of full employment. Which one of the following changes does not occur as a result of an increase in aggregate demand? Select one: a. Real GDP...
Which of the following would result in a leftward shift in the supply curve for good...
Which of the following would result in a leftward shift in the supply curve for good X can be         attributed to        a. an increase in the price of an input used in the production of the good X.        b. an increase the price of a substitute good in production.        c. an increase in the price of good X.        d. an increase in the price of a complementary good in production.        e. more than one of these choices Which of the...
When the expected future price of a good falls, the supply curve shifts to the right...
When the expected future price of a good falls, the supply curve shifts to the right and the demand curve shifts to the left simultaneously. What happens to the equilibrium price after the shifts? What happens to the equilibrium quantity after the shifts? Is it always possible to determine the direction of change in both the equilibrium price and quantity or is more information necessary? Use supply and demand curves to graphically illustrate your answer 7.0.3
Suppose that when the price of good A rises from $18 to $20, the quantity demanded...
Suppose that when the price of good A rises from $18 to $20, the quantity demanded of good B falls from 30 units to 20 units. Using the midpoint method, the cross-price elasticity of demand is Select one: a. -0.26, where goods A and B are complements. b. -0.26, where goods A and B are substitutes. c. -3.8, where goods A and B are complements. d. -3.8, where goods A and B are substitutes.
A sales tax imposed on sellers of a good A. decreases the demand and shifts the...
A sales tax imposed on sellers of a good A. decreases the demand and shifts the demand curve rightward. B. decreases the supply and shifts the supply curve leftward. C. decreases both the demand and the supply and shifts both the demand and supply curves leftward. D. decreases the supply and shifts the supply curve rightward. E. has no effect on either the demand or the supply.
As the level of real GDP increases, the short-run aggregate supply curve: a. shifts to the...
As the level of real GDP increases, the short-run aggregate supply curve: a. shifts to the right. b. shifts to the left. c. becomes flatter. d. becomes steeper. e. becomes horizontal to the real GDP axis. Firms' profits or production do not increase in the long run because: a. some factors of production are fixed in the long run. b. all the factors of production are variable in the long run. c. changes in factor costs completely offset any change...
13) The short-run aggregate supply curve shifts to the right when A) oil prices fall. B)...
13) The short-run aggregate supply curve shifts to the right when A) oil prices fall. B) output gap falls. C) expected inflation rate rises. 14) The time that it takes for policy makers to be sure of what the data are signaling about the future course of the economy is called A) the data lag B) the recognition lag C) the legislative lag D) the implementation lag D) expected inflation rate falls. 15) Which of the following is NOT a...
31. Increases in demand are graphed as rightward shifts of the demand curve. Similarly, increases in...
31. Increases in demand are graphed as rightward shifts of the demand curve. Similarly, increases in supply are graphed as rightward shifts of the supply curve. Group of answer choices True False 32. Assume the income elasticity of a car is 0.75. If consumer income decreases by 5%, the quantity demanded would _______ by _______. Group of answer choices increase 5.75% increase, 3.75% increase, 4.25% increase, 1.33% decrease, 3.75% 33. Which of the following will result in a definite increase...
The price of an input needed to produce good A falls. As a result, the demand...
The price of an input needed to produce good A falls. As a result, the demand for good B shifts to the left. From this we can infer that: Select one: A. none of the other choices is correct B. good A is used to produce good B. C. goods A and B are substitutes. D. good A is used to produce good B. E. goods A and B are complements.
1) Which of the following is NOT a determinant of the price elasticity of demand? A)...
1) Which of the following is NOT a determinant of the price elasticity of demand? A) the availability of potential substitutes B) the share of the budget spent on the item C) the time the consumer has to adjust to the price change D) the cost to produce the product 2) Which of the following will cause a rightward shift of the demand curve?                                   A) a decrease in the cost of production B) a decrease in the price of the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT