Goods X and Y are complementary goods. A decrease in price of ...

[09madisonrousseau09]

Goods X and Y are complementary goods. A decrease in price of good X has occurred. In the market for good Y, this will lead to
 
  A) an increase in price and a decrease in quantity.
  B) an increase in price and an increase in quantity.
  C) a decrease in price and a decrease in quantity.
  D) a decrease in price and an increase in quantity.

Question 2

An externality exists when
 
  A) goods are sold in specific geographic locations.
  B) some of the benefits or costs associated with a good are borne by third parties.
  C) the government taxes a good.
  D) the government subsidizes a good.

[verrinzo]

Answer to Question 1

B

Answer to Question 2

B

[09madisonrousseau09]

Correct answers!

[verrinzo]

Great! Please up vote