Goods that cannot be consumed without excluding other consumers are
A) public goods.
B) free.
C) are not scarce.
D) all of these choices.
Question 2
Which of the following best illustrates the concept of derived demand?
a. An increase in the wages of autoworkers leads to an increase in the demand for robots in automobile factories.
b. An auto firm decides to supply more minivans when there is a decrease in the demand for station wagons.
c. An increase in the price of gasoline leads to an increase in the demand for small cars.
d. An automobile firm faces an increase in the demand for cars it supplies to the market, which leads to an increase in the demand for autoworkers.
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