If Products C and D Are Close Substitutes, an Increase

question 112

Multiple Choice

If products C and D are close substitutes, an increase in the price of C will

• A) tend to cause the price of D to fall.
• B) shift the demand curve for C to the left and the demand curve for D to the right.
• C) shift the demand curve for D to the right.
• D) shift the demand curves of both products to the right.

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Definitions:

National Labor Relations Act

A foundational statute in United States labor law that guarantees the rights of private sector employees to organize into trade unions, engage in collective bargaining, and take collective action such as strikes.

Labor Organizing

The effort by workers to form, join, or assist a union to represent their collective interests in the workplace.

National Labor Relations Board

A federal agency in the United States that oversees labor practices, ensuring the rights of employers and employees under labor laws.

Fair Labor Standards Act

A United States law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards for full-time and part-time workers in the private sector and in federal, state, and local governments.