Assume that at the current market price of $4 per unit of a good, you are willing and able to buy 20 units. Last year at a price of $4 per unit, you would have purchased 30 units. What is most likely to have happened over the last year?
a. Demand has increased
b. Demand has decreased
c. Supply has increased
d. Supply has decreased
e. Quantity supplied has decreased
b
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The CPI is a measure of the
A) percentage change in the price level. B) average prices of all goods. C) average prices paid by consumers for a fixed basket of goods and services. D) average prices of all goods and services produced. E) average change in the output of the goods and services purchased by a typical urban consumer.
Depositors lack of information about the quality of bank assets can lead to
A) bank panics. B) bank booms. C) sequencing. D) asset transformation.
Suppose that as the price of apples rises, people switch from eating apples to eating oranges. This is known as:
A. a decrease in the demand for apples. B. the normal effect of a price change. C. the income effect of a price change. D. the substitution effect of a price change.
The implicit cost of ownership:
A. is the monetary opportunity cost that is often overlooked. B. is a cognitive bias. C. is an unproven concept. D. All of these are true.