Maude Thinks Delphiniums and Hollyhocks Are Perfect Substitutes, One for One.If

question 5

Multiple Choice

Maude thinks delphiniums and hollyhocks are perfect substitutes, one for one.If delphiniums currently cost $2 per unit and hollyhocks cost $3 per unit and if the price of delphiniums rises to $5 per unit,

• A)there will be no change in the demand for hollyhocks.
• B)the entire change in demand for delphiniums will be due to the substitution effect.
• C)1/3 of the change in demand will be due to the income effect.
• D)the income effect of the change in demand for delphiniums will be bigger than the substitution effect.
• E)2/3 of the change in demand will be due to the income effect.

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Unlawful Conspiracies

Refers to agreements or plans made in secret, often between competitors, to perform actions that are illegal or deceptive.

Landrum-Griffin Act

A 1959 U.S. law aimed at protecting union members from corrupt practices of their own unions by establishing certain democratic procedures within unions and regulating union affairs.

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