If U.S. consumers increase their spending on electric cars by 100 percent, and 100 percent more electric cars are produced, this is known as the
A) majority rule.
B) proportional rule.
C) government rule.
D) profit rule.
Answer: B
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What is the largest problem associated with using a tax to correct for an externality? Explain
What will be an ideal response?
An increase in the supply of money would decrease the interest rate and increase aggregate demand, other things equal
a. True b. False Indicate whether the statement is true or false
Answer the following statement(s) true (T) or false (F)
1. Supply refers to how much of a product or service is available for purchase at a given time. 2. The law of demand states that as the price for an item or service increases, so will the supply and that if the price is lower, the supply will also be less. 3. Mae bakes 100 cinnamon rolls each day to sell at her café, and each day she sells out before breakfast is over. Many of her customers ask for, but don't get one. Her customers ask that she bake more cinnamon rolls each day. This is an example of a shortage. 4. Holding all other factors constant, prices are set slightly above the point where supply equals demand. 5. The price at which supply of an item or service equals the demand for that item is known as the market price.
Marginal cost refers to the incremental cost arising from a decision.
Answer the following statement true (T) or false (F)