List three characteristics of demand curves. Make sure to explain the shape of the curve and the meaning of the vertical and horizontal intercepts
What will be an ideal response?
First, they are downward sloping. Second, they intersect the vertical axis because there will be a price above which quantity demanded will be zero. Last, they intersect the horizontal axis. Even at a price of zero, quantity demanded will be limited for a given period of time.
You might also like to view...
In the classical model, what is the result of an increase in aggregate demand?
A) The price level increases, and real GDP remains constant. B) The price level decreases, and real GDP remains constant. C) Real GDP increases, and the price level remains constant. D) Real GDP decreases, and the price level remains constant.
Which of the following is not generally considered one of the three main causes of the financial crisis of 2007-2009?
A) insufficient regulation of the shadow banking system B) excessive risk taking by commercial banks and other financial intermediaries C) the "too-big-to-fail problem" of large financial firms D) inaction by the Federal Reserve in acting as lender of last resort
If Macroland's first Prime Bank has deposits of $35,000 and makes the maximum possible loans of $50,000 allowed, then Macroland's legal reserve requirement must be 17.5 percent
Indicate whether the statement is true or false
Public goods are nonrival in consumption and nonexclusive, so private firms cannot sell them profitably
Indicate whether the statement is true or false