Which of the following will NOT lead to a decrease in demand for a normal good?
A) an increase in income
B) an increase in the price of an input
C) a decrease in the price of a complement good
D) an increase in the number of consumers
B
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Refer to Figure 15-6. The profit-maximizing output and price for the monopolist are
A) output = 62; price = $24. B) output = 104; price = $20.80. C) output = 83; price = $22. D) output = 62; price = $18.
When calculating the price elasticity of demand, it is assumed that all of the other determinants of demand are to be held constant
Indicate whether the statement is true or false
If Best Paints and Paint with Us are paint suppliers in tacit collusion and Best Paints launches a new advertising campaign that states that it will meet any competitor's price on comparable paint, Best Paints might be tacitly signaling to Paint with Us that they are willing to ________.
A) raise their price B) lower their price C) maintain current the price D) cut price is exactly half
Which of the following changes is observed when the Fed increases the federal funds rate? a. Inflation is brought to an immediate halt
b. The inflation rate increases for several months, but then begins to decrease. c. Major banks try to offset this change by lowering the interest rates they charge on loans. d. Major banks try to offset this change by lowering the interest rates they pay on savings deposits. e. Major banks raise the prime interest rate that they charge to their best customers.