Apple just announced it will be coming out with the newest model iPhone in the next six months. One could reasonably expect demand for the current model of iPhone to:
A. increase due to a change in expectations of future prices.
B. decrease due to the change in price of a substitute good.
C. decrease due to a change in expectations of future prices.
D. increase due to limited supply of the current model.
Answer: C
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A. must be below ATC. B. may be below ATC. C. must be above ATC. D. may be above ATC.
Of the four effects on interest rates from an increase in the money supply, the one that works in the opposite direction of the other three is the
A) liquidity effect. B) income effect. C) price level effect. D) expected inflation effect.
The major consideration of whether something can serve as money is that it must be
A. printed by each nation's government or banking authority. B. freely available to all who want it. C. exchangeable for other types of money. D. acceptable as a means of payment.
If the demand for a product decreases, then we would expect equilibrium price
a. to increase and equilibrium quantity to decrease. b. to decrease and equilibrium quantity to increase. c. and equilibrium quantity to both increase. d. and equilibrium quantity to both decrease.