Suppose a concert by Lady Gaga and a basketball game played by the L.A. Lakers are substitutes, then which of the following is TRUE?
A) If the price of a ticket to a Lakers game increases, then the demand for Lady Gaga tickets will fall.
B) If the price of a ticket to a Lakers game decreases, the quantity of Lakers tickets demanded will increase.
C) If the price of a ticket to a Lakers game increases, then the demand for Lady Gaga tickets will remain unchanged.
D) The price of a ticket to a Lakers game will always equal the price of a ticket to a Lady Gaga concert.
Question 2
Refer to the above figure. A farmer has 50 acres of land on which to grow wheat or beans. An acre of land yields 400 bushels of beans or 800 bushels of wheat.
Which of the following is a possible combination of beans and wheat that can be grown, assuming the land is farmed efficiently? A) 30,000 bushels of each
B) 15,000 bushels of beans and 10,000 bushels of wheat
C) 25,000 bushels of beans and 25,000 bushels of wheat
D) 20,000 bushels of beans and 40,000 bushels of wheat
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