Answer:
A. Decrease in price of complements
B. Increase in price of complements
C. Increase in price of substitute
D. Decrease in price of substitute
Explanation:
A. A decrease in the price of a good would increase its demand. This will cause the demand for its complements to increase as well, this is because the complements are consumed together.
B. Similarly, the increase in the price of a good would decrease in its demand. Along with it, the demand for its complement will decrease as well because the complements will be consumed together.
C. When the price of a good increases, its demand will decrease. The demand for its substitutes will increase because the consumers will prefer the cheaper substitute.
D. Similarly, the decline in the price of a good will make it cheaper, so its demand will increase. The demand for its substitute will decrease because the consumers will prefer the good that is cheaper.
Answer:
The correct answer to fill the blank space will be option "C"
Explanation:
The relation between minimum wage and employment depends on the magnitude of the minimum wage relative to wage rate. Seein this we can say that an increase in the legal minimum wage will bring up the employment rate if it is set bellow the wage rate.
I believe the answer is: D. patriotism
Patriotism is the act of showing vigorous support to our own country . The support that shown in patriotism does not revolve around financial decision, but more to how our country is perceived in its foreign nation relative to the other countries.
Answer:
Stocks and Bonds
Yes. It is a rational behavior for individuals with a long-term investment horizon to choose to invest in bonds rather than investing in stocks despite the overwhelming "evidence that suggests that over long periods of time stocks still outperform bonds."
Rational behavior involves making rational choices that provide optimal levels of benefit or utility for the individual. People who make rational choices would rather choose bonds with lower risks and returns than stocks with higher risks and returns.
Explanation:
Every rational investor would prefer to reduce her risk exposure instead of increasing it. Every investor is also aware that investments with higher risks attract higher returns. However, determining the certainty of the returns is difficult.
