Because consumers want more Baby Bigfeet dolls, more Baby Bigfeet dolls will be produced and brought to the market. This is an example of
a. consumer sovereignty
b. resources not being scarce
c. ceteris paribus
d. a natural resource
e. macroeconomic activity
A
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When positive or negative externalities exists in the production of a good, the market outcome is an inefficient outcome.
Answer the following statement true (T) or false (F)
A reduction in the user cost of capital leads firms to ________ their profit by ________ their capital-output ratio
A) raise, increasing B) raise, decreasing C) lower, increasing D) lower, decreasing
Increased deficit financing, following the use of expansionary fiscal policy by the U.S., will raise U.S. interest rates and causes the dollar to appreciate
Indicate whether the statement is true or false
Use the above figure. The consumer's choice changes from YA to YB. Which of the following statements about good Y is TRUE?
A. price has decreased and the quantity demanded has fallen. B. price has increased and the quantity demanded has fallen. C. price has decreased and the quantity demanded has risen. D. price has increased and the quantity demanded has risen.