The law of demand is based on the observation that
A. people always want more than they need.
B. people are indifferent to price changes.
C. people buy more of a product when its price falls.
D. people buy less of a product when the product becomes less fashionable.
Answer: C
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The absolute price of a good is its
A) relative price. B) money price. C) subjective price. D) projected price.
In international finance, speculation involves: ยท
a. not being able to make a commitment to buy or sell. b. taking a risk by purchasing (or selling) a foreign currency asset,holding it in anticipation of a rate increase (decrease). c. simultaneously buying several currencies to ensure that at least one will rise in value. d. avoiding risk of loss by offsetting an obligation to buy a foreign currency by locking in a contract to sell it at the same time.
Let us suppose that consumer expectations are optimistic and therefore consumer spending rises. Which of the following effects would likely take place?
An increase in aggregate demand A decrease in aggregate demand A decrease in aggregate supply An increase in aggregate supply
Hold-up:
A. mitigates worker shirking. B. makes spot exchange efficient. C. solves the principal-agent problem. D. is a hazard associated with relationship-specific exchange.