"Less demand causes lower prices, and lower prices cause more demand." The above statement shows
A) economic theory can be used to prove just about anything.
B) everything depends on everything else.
C) prices fluctuate in a free-market situation.
D) the speaker has confused himself by saying demand in the first half of the statement when he meant quantity demanded.
E) the speaker has confused himself by saying demand in the second half of the statement when he meant quantity demanded.
E
You might also like to view...
Refer to Figure 3-4. If the price is $20,
A) there is a surplus of 600 units. B) quantity demanded is zero. C) there is a shortage of 600 units. D) the market is in equilibrium.
Sole proprietorships produce more goods and services than does any other form of business organization
a. True b. False
The marginal utility per dollar spent on a good represents the
a. satisfaction received for each dollar spent on the last unit consumed b. total satisfaction received from consuming a certain number of units of that good c. dollar value of average utility d. change in price due to a one-unit increase in total utility e. price paid for the last unit of utility
An example of a U.S. export would be:
A. a bushel of apples that Canadians pick and enjoy on a lovely fall day in Vermont. B. an Apple computer purchased by a U.S. college student who plans to study abroad in France. C. an Apple computer, made in the U.S., purchased by a French student. D. a French bottle of wine consumed by an American.