The price effect is the effect of a ________ on the quantity of the good ________
A) decrease in the price; demanded
B) change in the price; supplied
C) change in price and income; consumed
D) change in the price; consumed
D
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Refer to the scenario above. What is Alice's optimal bidding price?
A) $25,000 B) $30,000 C) $24,000 D) $36,000
In a competitive market, a. demand will always reflect all spillover costs
b. demand will always reflect all spillover benefits. c. supply will always reflect all spillover costs. d. none of the above are true.
Assume that Brenda has positive wealth. As the interest rate decreased, Brenda reduced her current consumption. For Brenda
A. the substitution effect of an interest rate decrease outweighs the income effect. B. the substitution effect of an interest rate increase must be zero. C. the income effect of an interest rate decrease outweighs the substitution effect. D. the income effect of an interest rate decrease must equal the substitution effect.
Which of the following circumstances would encourage I'MaPharmaCo. to increase research and development activities?
A. cost of financial capital is high B. patent term expires in 20 years C. cost of financial capital is low D. a low rate of return is likely