We observed that the price of a good rises and the quantity purchased also rises. Everything else being equal, it is consistent that
a. the price of a substitute good fell.
b. the price of a complement rose.
c. income rose.
d. costs of inputs increased.
c
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The figure above shows the U.S. supply of labor curve. If there is a simultaneous increase in the nominal wage rate of 10 percent and a 10 percent increase in the price level, there will be a
A) rightward shift of the supply of labor curve. B) movement downward along the supply of labor curve from a point such as A to a point such as B. C) leftward shift of the supply of labor curve. D) movement upward along the supply of labor curve from a point such as C to a point such as B. E) None of the above answers is correct because there is no change in the supply of labor curve.
If the government increases taxes, which of the following will occur in the short run?
a. An increase in GDP, an increase in the price level, an increase in money demand and an increase in the interest rate. b. An increase in GDP, an increase in the price level, a decrease in money demand and an increase in the interest rate. c. An increase in GDP, a decrease in the price level, an increase in money demand and an increase in the interest rate. d. A decrease in GDP, a decrease in the price level, a decrease in money demand and a decrease in the interest rate. e. A decrease in GDP, an increase in the price level, an increase in money demand and a decrease in the interest rate.
Elasticity also reveals whether firms can pass __________ costs that they incur on to consumers.
a. direct b. higher c. lower d. indirect
The budget deficit/surplus projections for 2005 that were made in 2000 were wrong, because there was an
A. anticipated increase in defense spending. B. unanticipated increase in defense spending. C. unanticipated increase in interest rates. D. anticipated increase in immigration.