According to the income effect, lower prices give people more purchasing power with which to increase the quantity demanded of goods
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Quantity supplied increases when the price of a good increases because
A. producers find it more profitable to make the item. B. potential buyers “drop out” of the market, so the good becomes more abundant. C. as demand decreases with a high price, surpluses appear. D. All of these responses are correct.
A firm's principals are its
A) shareholders. B) management. C) values. D) customers.
The natural rate of unemployment ________
A) is equal to 0.078 percent B) is a constant C) varies across time and countries D) is equal to the cyclical rate of unemployment divided by the actual rate
If an auto dealer wants to hire a salaried salesman but is afraid of facing the adverse selection problem, the principle can
a. Hire a salesman who has a reputation for working hard b. Monitor the salesman to prevent shirking c. All of the above d. None of the above