A demand curve shows how quantity demanded changes as the price changes. It implies that
a. only a change in price can shift a demand curve
b. everything else that affects demand is assumed to be constant
c. quantity demanded is unrelated to price
d. economists are concerned only with money
e. it is impossible to show how anything but price affects demand
B
You might also like to view...
Use the figure below to answer the following question. The equilibrium point in the market is the point at which the S and D curves intersect.
At equilibrium, the producer surplus would be represented by the area
A. b. B. b + c + d. C. a. D. a + b.
In the United States, the main source of fluctuations in the current account balance is
A) exports of capital. B) net transfers. C) international debt. D) net exports. E) net interest.
Bank borrowing from the Fed is referred to as:
A) federal funds B) discount loans C) repurchase agreements D) reverse repurchase agreements
In the two-period model, the budget constraint is kinked for all of these reasons, except
A) the real interest rate is greater than zero. B) there are costs to banks from lending and borrowing. C) there is asymmetric information in the credit market. D) there is limited commitment in the credit market.