If price rises, what happens to demand for a product?
a. It increases.
b. It decreases.
c. It does not change.
d. Uncertain-economic theory has no answer to this question.
c
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From 2012 until 2087, the CBO projects that, as a percentage of GDP, government revenues are expected to ________, government expenditure is expected to ________, and the budget deficit is expected to ________
A) increase; decrease; decrease B) decrease; increase; increase C) increase; increase; increase D) increase; increase; decrease
All these are characteristics of a monopoly except,
a. There is one seller of the product b. Has few substitutes c. Controls a large share of the market d. Controls a small share of the market
When a U.S. company shifts its call-center operations overseas to reduce costs, it is applying the economic concept of:
A. thinking at the margin. B. comparative advantage. C. diminishing returns. D. using assumptions to simplify.
Efficiency wage theory suggests that firms may hold wages above the market clearing rate because
A. unspoken agreements between workers and firms are in place. B. they believe that the productivity of workers increases with the wage rate. C. long-term contracts fix wage rates for a period of one to three years. D. it is required by law that they do so.