A decrease in the price of one good results in a parallel shift in the budget line.
Answer the following statement true (T) or false (F)
False
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In the above figure, in order for the equilibrium price to remain constant while the equilibrium quantity increases, the
A) supply and demand curves both would have to shift leftward. B) supply curve would have to shift leftward and the demand curve would have to shift rightward. C) supply curve would have to shift rightward and the demand curve would have to shift leftward. D) supply and demand curves both would have to shift rightward.
Which of the following European Union (EU) nations has not adopted the euro?
A. France B. Great Britain C. Germany D. Italy
In which of the following situations will both market clearing price and the equilibrium quantity decrease?
A. an increase in demand and no change in supply B. an increase in supply with no change in demand C. a decrease in supply with no change in demand D. a decrease in demand with no change in supply
Maria buys a cup of coffee every day after her economics class. The first cup of coffee always tastes wonderful. The second does not taste quite as good as the first. The third does not taste quite as good as the second. Maria is experiencing
A. irrational behavior. B. the law of diminishing marginal utility. C. the substitution effect. D. the income effect.