What assumption is used when making demand curves?
a. All economic factors remain constant except price.
b. All consumers lie about their purchasing habits.
c. Inflation always causes product prices to rise.
d. Availability of product is the most important variable.
Ans: a. All economic factors remain constant except price.
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Is the following quote correct? "Here's the law of demand in a nutshell: The higher the price, the lower the demand."
A) Yes, it is totally correct. B) No. It would be correct if it were to also say "other things constant." C) No, because it confuses demand and quantity demanded. D) No, because the law of demand does not apply to nutshells.
A negative shock in aggregate demand will likely result in no permanent change in ________
A) output B) the equilibrium inflation rate if the central bank responds by lowering interest rates C) aggregate demand, if the central bank responds by lowering interest rates D) all of the above E) none of the above
For a worker to be potentially available, he or she must
A) know about the jobs available at a particular firm. B) be in the relevant geographic market and be willing to work for minimum wage. C) have most of the skills required by the firm only. D) have the skills required by the firm and be in the relevant geographic market.
Other things being equal, an increase in the price of aspirin will decrease the demand for aspirin
a. True b. False Indicate whether the statement is true or false