If, in response to an increase in the price of chocolate the quantity of chocolate demanded decreases, economists would describe this as
A) a change in consumer income. B) a decrease in quantity demanded.
C) a decrease in demand. D) a decrease in consumers' taste for chocolate.
B
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The implementation of new production methods by managers, such as the "just-in-time" inventory system, increases:
A. the quantity of human capital. B. the share of the population employed. C. the unemployment rate. D. average labor productivity.
An economy currently has an inflationary gap. An increase in the money wage rate will ________ the inflationary gap and ________ the price level
A) decrease; decrease B) increase; increase C) increase; decrease D) decrease; increase
The most important of the factors that make a firm successful and that can be controlled by the firm's owners and managers are
A) lobbying government to erect or enforce entry barriers in its markets and the marketing of its products as widely as possible. B) the establishment of trademarks for its products and the aggressive defense of those trademarks. C) the differentiation of its products and the production of products at a lower average cost than competing firms. D) the selection of the prices of its products and the selection of the most productive and loyal employees.
Which of the following is a characteristic of a monopolistically competitive market?I.Firms sell differentiated products.II.Each firm earns a positive economic profit in the long run.III.Firms freely enter and exit the market.
A. II only B. I and II only C. I and III only D. I, II, and III