Other things being equal, the effect of an increase in the price of Coca-Cola would cause a(n):
a. upward movement along the demand curve for Coca-Cola.
b. leftward shift in the demand curve for Coca-Cola.
c. downward movement along the demand curve for Coca-Cola.
d. rightward shift in the demand curve for Coca-Cola.
a
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Given the Republic of Korea's experience, what can we conclude about comparative advantage?
What will be an ideal response?
If a 200 billion dollar increase in government spending occurs when the Fed seeks to maintain a fixed interest rate then
A) there is no crowding out, the LM curve shifts to offset the shift in the IS curve. B) there is no crowding out, the monetary policy is fixes as is the LM curve fixed. C) crowding out is assured since monetary policy is fixed. D) crowding out is assured since the Fed will accommodate the spending increases.
One reason why economists often use models in their analysis is that
A) a model helps us to understand, explain, and predict economic phenomena in the real world. B) a model accurately pictures every detail of the real world economy. C) a model relates to individual thought processes rather than behavior. D) it is relatively easy to perfectly specify a model.
Between 1980 and 2000, income per person in India
A) doubled. B) tripled. C) quadrupled. D) decreased by 25 percent.