If Two Goods, J and K, Are Complements, Then Which

question 392

Multiple Choice

If two goods, J and K, are complements, then which of the following statements is FALSE?

• A) They are consumed together.
• B) An increase in the price of J causes the demand for K to rise.
• C) When the quantity demanded of J increases, the demand for K increases.
• D) A decrease in the price of K causes an increase in the demand for J.

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Definitions:

Industrial Regulation

The older and more traditional type of regulation in which government is concerned with the prices charged and the services provided to the public in specific industries. Differs from social regulation.

Monopolization

The process or state where a single company achieves dominant control over an entire market, minimizing competition.

Celler-Kefauver Act

The federal law of 1950 that amended the Clayton Act by prohibiting the acquisition of the assets of one firm by another firm when the effect would be less competition.

Vertical Mergers

Mergers between companies that operate at different stages of the production processes in the same industry, intended to increase efficiencies or capture more of the supply chain.