If we observe a decrease in the price of a good and an increase in the amount of the good bought and sold, this could be explained by a(n):
A. increase in the supply of the good.
B. increase in the demand for the good.
C. decrease in the demand for the good.
D. decrease in the supply of the good.
Answer: A
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In the figure above, the total revenue from pizza per day is
A) $60,000. B) $100,000. C) $40,000. D) $80,000. E) $50,000.
Answer the following statements true (T) or false (F)
1. The measure of elasticity will be the same at any place along a given straight-line, slanted demand curve. 2. If 1,000 units of a particular good would be purchased at 40 cents per unit but only 750 units would be purchased at 50 cents per unit, the demand for the good is inelastic. 3. Graphically, perfectly elastic demand is represented by a straight horizontal line. 4. It is possible for a change in the price of one commodity to lead to a change in the demand for another commodity. 5. Any time the market price moves away from its equilibrium position to a lower price, market action will tend to force it further away from its original equilibrium position.
Products can be differentiated
A) if the buyers are homogeneous and their number increases. B) by location and by brand name. C) only by brand name. D) none of the above
If cross elasticity between two goods is infinite, the goods are
a. perfect substitutes b. perfect complements c. good but not perfect substitutes d. not considered to be substitutes e. produced by the same firm