An increase in the price of a good or service leads to a(n) ________ that leads to a(n) ________.
A. increase in quantity demanded; shift of the demand curve
B. decrease in quantity demanded; movement along the demand curve
C. increase in demand; shift of the demand curve
D. decrease in demand; movement along the demand curve
Answer: B
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Describe the relationship illustrated by the Laffer curve
What will be an ideal response?
Natural monopoly exists when:
A. one firm can supply the entire quantity demanded at higher cost than two or more firms. B. the long-run average cost curve exhibits constant returns to scale. C. one firm can supply the entire quantity demanded at lower cost than two or more firms. D. one firm can supply the entire quantity demanded at the same cost as two or more firms.
Who is most likely to be worried about high inflation?
(A) A retired couple on a fixed income (B) A shopkeeper (C) A doctor with a suburban practice (D) A factory worker
A country's capital stock decreased after a war while its labor supply remained constant. Which of the following will happen in this case if output is a function of capital and efficiency units of labor?
A) Its total output will remain constant. B) Its total output will decrease. C) Its per capita output will remain constant. D) Its per capita output will increase.