Two months ago, the Marbury Shirt company sold 200 shirts at $30 per shirt. Last month the company raised its price to $35 per shirt and sold 200 shirts. Evidently the company experienced a(n):
a. Increase in demand
b. Decrease in supply
c. Increase in supply
d. Decrease in demand
a. Increase in demand
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The term Ceteris paribus means that:
a. the model includes all important variables occurring in the real world. b. all factors which influence the event are changing at the same time. c. one influence is changing and everything else is being held constant. d. the consumer is king.
A free-rider problem arises whenever: a. goods cannot be provided exclusively to those who pay for them. b. the price of a good is very low
c. the government provides goods or services. d. goods cease to be scarce.
The foreign exchange market is the market where
A) goods and services of different countries are exchanged. B) currencies of different countries are exchanged. C) transportation services for foreign goods are contracted. D) either a or c E) none of the above
Contrast demand-pull inflation with cost-push inflation.
What will be an ideal response?