According to the law of demand, consumers will
A) change their production plans when the price of a good changes.
B) change their consumption plans when the price of a good changes.
C) change their demand when the price of a good changes.
D) increase their quantity demanded when the price of a good increases.
E) decrease their quantity demanded when the price of a good decreases.
B
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Suppose that aggregate demand increases along the upward sloping portion of the aggregate supply curve. What is the result?
A) Real GDP increases more than nominal GDP increases. B) Nominal GDP and real GDP increase by the same amount. C) Nominal GDP increases more than real GDP increases. D) Nominal GDP and real GDP decrease by the same amount.
Actual unemployment can exceed the natural rate of unemployment due to
A) cyclical unemployment. B) structural unemployment. C) frictional unemployment. D) all of the above.
Make use of the quantity equation to answer the following problem. If the Fed increases the money supply by 4%, velocity increases by 1%, and economic growth is 3%, by how much will the price level increase?
What will be an ideal response?
You are considering buying a store. The storeowner gives you an estimate of the net profits of the store on a typical day. The owner has most likely given you the figures for the day when
a. Sales are low, costs are high b. Sales are very close to costs c. Sales are high, costs are low d. All of the above