Suppose that consumers expect that the price of a product will increase in the future. The result is that:
A. the current demand for the product increases.
B. the current demand for the product decreases.
C. the current supply of the product increases.
D. the current supply of the product decreases.
Answer: A
You might also like to view...
Leather belts and leather shoes are substitutes in production. If style changes increase the demand for leather belts, the supply curve of leather shoes will shift
A) leftward and the equilibrium price of leather shoes will fall. B) leftward and the equilibrium price of leather shoes will rise. C) rightward and the equilibrium price of leather shoes will fall. D) rightward and the equilibrium price of leather shoes will rise.
Describe the structure of the Fed's Open Market Committee (FOMC). What is this committee's primary responsibility?
What will be an ideal response?
To determine whether a particular good is a normal good, a luxury good, or an inferior good, you would want to observe what happens to demand for the good when __________ changes.
A. supply B. the price of raw materials C. price D. income
Differences in production efficiencies among nations in producing a particular good result from:
A. different endowments of fertile soil. B. different amounts of skilled labor. C. different levels of technological knowledge. D. all of these.