What is the effect on product A of an increase in the price of complementary product B?

A.

supply curves are upsloping.

B.

the higher price means that real incomes have risen.

C.

consumers will substitute other products for the one whose price has risen.

D.

consumers substitute relatively high-priced for relatively low-priced products.

A.

a change in the price of close-substitute product J

B.

an increase in consumer incomes

C.

a change in the price of K

D.

a change in consumer tastes

A.

a widely publicized study which indicates beef increases one's cholesterol

B.

a reduction in the price of cattle feed

C.

an effective advertising campaign by pork producers

D.

a change in the incomes of beef consumers

A.

the expansion of production necessitates the use of qualitatively superior inputs.

B.

mass production economies are associated with larger levels of output.

C.

consumers envision a positive relationship between price and quality.

D.

beyond some point the production costs of additional units of output will rise.

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B.

a shortage of 50 units.

C.

a surplus of 50 units.

D.

a surplus of 100 units.

E.

a shortage of 100 units.

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A.

induce new firms to enter the industry.

B.

result in a product surplus.

C.

result in a product shortage.