Reference no: EM131393443
1. Consider three? markets: glass,? cars, and manufactured houses. Glass is an input in cars and manufactured houses. Suppose there is a major increase in consumer demand for manufactured? houses, other things being equal. One result is that manufactured house makers are willing to pay more for glass. Which effects will this have in the market for glass and the market for? cars?
A. Prices of both glass and cars will fall.
B. Demand for glass will increase and demand for cars will fall.
C. Supply of glass will increase and the equilibrium price of cars will fall.
D. The price of glass will increase and the demand for cars will increase.
E. Both demand and supply increase in the glass market and both demand and supply decrease in the cars market.
F. Demand for glass will increase and the equilibrium quantity of cars bought and sold will decrease.
2. Movie rentals and popcorn are complement goods for Elizabeth.? Therefore:
A. both movies and popcorn are normal goods.
B.none of the above.
C. when the price of movies? increases, her demand for popcorn increases.
D. when the price of popcorn? increases, her demand for movies decreases.
E. when the price of popcorn? increases, her demand for popcorn decreases.
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Movie rentals and popcorn are complement goods for elizabeth
: Movie rentals and popcorn are complement goods for Elizabeth.
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