A shift in demand occurs when
A) the price of that good changes.
B) the amount demanded of a good changes at each existing price.
C) there is a change in quantity demanded.
D) the price changes and the good is a normal good.
Answer: B
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Discuss the trends and implications of the following graph, especially with respect to the official start of the EMU on January 1, 1999
What will be an ideal response?
A decrease in the value of a currency relative to other currencies is called a(n):
A. depreciation. B. devaluation. C. appreciation. D. revaluation.
Suppose the law of diminishing marginal utility holds for coffee. As a person drinks more coffee during the day, the total utility he or she receives will:
A. increase faster and faster. B. fall steadily. C. remain constant. D. rise, but at slower and slower rates.
Suppose the price level is fixed, the MPC is .5, and the GDP gap is a negative $80 billion. To achieve full-employment output (exactly), government should:
A. increase government expenditures by $80 billion. B. reduce government expenditures by $40 billion. C. reduce taxes by $40 billion. D. reduce taxes by $80 billion.