The Law of Demand states that, other things being constant, when the price of a good increases then;
(a) Demand and Supply decrease.
(b) Quantity demanded increases.
(c) Consumers should switch to a different product.
(d) None of the above.
Answer: (d) None of the above
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According to the EPA’s first prospective study of the Clean Air Act Amendments (CAAA) of 1990,
a. these amendments do not pass the feasibility test b. the estimated present value of benefits outweigh the present value of costs c. the CAAA achieve allocative efficiency d. the present value of net benefits associated with these amendments are negative
Cost plus pricing is
A) consistent with profit maximization. B) generally inconsistent with profit maximization. C) the same as peak-load pricing. D) used in product line extensions.
The income net of taxes is called _____
a. real income b. disposable income c. nominal income d. taxable income e. personal income
If the demand for fast-food rises as a result of lower income, we would say fast-food is an inferior good
a. True b. False Indicate whether the statement is true or false