Kari downloads 7 songs per month when the price is $1.29 per song and 10 songs per month when the price is $0.99 per song. Kari's behavior demonstrates the law of
a. price.
b. supply.
c. demand.
d. income.
c
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When GDP is measured in "current prices" it is known as the
A) real GNP. B) real GDP. C) nominal GNP. D) nominal GDP.
If the reserve ratio is 4 percent, the money multiplier is equal to 25.
Answer the following statement true (T) or false (F)
Autonomous consumption is
A. consumption spending that does not depend on the level of income. B. consumption spending when the marginal propensity to consume is 1. C. the amount spent on consumption when saving equals zero. D. consumption spending that is earned rather than transferred from the government.
Suppose the price of A increases by 10 percent while the quantity demanded of B does NOT change. We would conclude that
A. the two goods are not related. B. the two goods are complements, but the cross elasticity of demand is not large. C. the two goods are perfect substitutes. D. the two goods are substitutes, but the cross elasticity of demand is not large.