The Law of Demand indicates that
A. there is a negative relationship between quantity demanded and price.
B. there is a positive relationship between quantity demanded and price.
C. there is a positive relationship between quantity demanded and quantity supplied.
D. there is a negative relationship between quantity demanded and quantity supplied.
Answer: A
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Use the figure below to answer the following question.
An increase in quantity supplied caused by a change in price is depicted by a
A. movement from point y to point x. B. shift from S1 to S2. C. movement from point x to point y. D. shift from S2 to S1.
Which of the following would not affect an individual's demand?
A. Prices of related goods B. The individual's preferences C. The individual's income D. The costs of inputs
Excluding criminal activities, the underground economy in the United States is equivalent in value to approximately what percentage of the GDP?
a. 10 to 15 percent b. 20 to 25 percent c. 30 to 35 percent d. not determinable
If the Fed’s monetary policy causes a substantial increase in interest rates, what is the most likely impact on velocity?
A. Velocity will decrease. B. Velocity will increase. C. Velocity will remain constant. D. Velocity is unrelated to interest rates.