Japan produces gasoline-powered cars and electric cars. If the price of gasoline-powered cars rises (because the cost of running them rises due to an increase in the price of gasoline), what happens in the market for electric cars? O Demand for electric cars falls - electric cars and gasoline-powered cars are complements O Demand for electric cars rises - electric cars and gasoline-powered cars are complements Demand for electric cars falls – electric cars and gasoline-powered cars are substitutes O Demand for electric cars rises - electric cars and gasoline-powered cars are substitutes

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Q: Something is an inferior good if the demand for the good a) decreases as the price of a substitute…

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A: Inelastic demand means when price increases by some percentage, quantity demanded increases by less…

Q: Which one of the following statement is true? O a. Demand for a good tends to change when you…

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Q: When the price of broccoli increases, the market for the substitute product Brussel sprouts would…

A: Demand is the quantity of a good which the consumers are in turn willing and being able to purchase…

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A: Demand curve is negatively sloped showing inverse relationship between price and quantity demanded.

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A: The decreasing use of DVD players affected the market for prerecorded DVDs through the leftward…

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A:

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Q: Shifts in the demand curve are caused by O Demand for other goods O Factors other than the price O…

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A: Cross price elasticity of a good measures the responsiveness in the quantity demand of a good due to…

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Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.