"Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises." This relationship between price and quantity demanded is referred to as
a. equilibrium
b. the law of demand.
c. the relationship between demand and income.
d. the definition of a normal good.
b
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Why do firms enter into a collusive agreement?
A) To increase profits B) To reduce prices C) To reduce market concentration D) To increase market supply
People hold money because it is liquid and lacks risk under the
A. precautionary demand for money. B. money balance demand for money. C. asset demand for money. D. transactions demand for money.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point A necessarily represents
A. only hybrid cars being produced. B. an unattainable production point. C. what society wants. D. the economy's optimal production point.
When Mexico experiences a period of high inflation and Mexicans lose confidence in their peso as a store of value, which of the following would be most likely to occur?
A. Mexicans would use a different currency as a medium of exchange. B. The value of foreign currencies would depreciate relative to the peso. C. The buying power of the peso would increase. D. The demand for pesos would increase.