Which of the following would most likely cause a decrease in the current demand for a normal good?
a. An increase in the price of the good
b. An increase in the expected future price of the good.
c. A decrease in the price of a complement for the good.
d. None of the above would be likely to cause a decrease in current demand for a normal good.
d
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Assume that the economy is in equilibrium when the real interest rate rises. Explain, step-by-step, how the components of expenditure adjust to bring the economy to its new equilibrium
What will be an ideal response?
A demand curve shows the relationship between price and quantity demanded only so long as all other things are held constant
a. True b. False Indicate whether the statement is true or false
At which interest rate is the present value of $95.40 one year from today equal to $90 today?
a. 4 percent b. 5 percent c. 6 percent d. 7 percent
Suppose that the demand for artichokes (Qa) is given as: Qa = 200 - 4P. What is the price elasticity of demand if the price of artichokes is $10?
-4 -1 0 -0.25 negative infinity