Which would have no effect on the demand for motorcycles?
a. A change in tastes
b. A change in the cost of steel
c. A change in the price of gas
d. A change in the prices of cars
Answer: b. A change in the cost of steel
You might also like to view...
The federal government increases spending by $50 billion, and the main effect is an increase in the price level. It must be true that the economy is operating on the
A. horizontal portion of the aggregate demand curve. B. horizontal portion of the aggregate supply curve. C. vertical portion of the aggregate supply curve. D. vertical portion of the aggregate demand curve.
Which of the following industries likely will be a long-term, inherent comparative advantage for the United States?
A. Manufacturing of commodities B. Automobiles C. Textiles D. Agriculture
DVDs and DVD players are complements. An increase in the price of DVD players would cause which of the following in the market for DVDs?
A. The equilibrium price of DVDs would increase, and the equilibrium quantity would decrease. B. The equilibrium price and quantity of DVDs would increase. C. The equilibrium price of DVDs would decrease, and the equilibrium quantity would increase. D. The equilibrium price and quantity of DVDs would decrease.
When discussing the CPI, the term "commodity substitution bias" refers to changes in
A) prices that lead business to change the items they buy. B) quantities that lead households to change the items they buy. C) prices that lead households to change the items they buy. D) income that lead households to change the items they buy. E) stores so that consumers switch from one store to another.