In deriving the demand schedule for a good, economists assume that
A) consumers have equal incomes to allocate among goods.
B) a consumer will allocate all of her income to one good.
C) all other influences on demand except the product price are held constant.
D) reported income changes at each point on the demand schedule.
Answer: C
You might also like to view...
Answer the following statements true (T) or false (F)
1. United States has had little success with the surplus aspect of balancing the budget over the period of a business cycle. 2. The full-employment balanced budget always shows a surplus. 3. A deficit budget adds to the national debt. 4. The United States will face bankruptcy if the national debt ever reaches a figure higher than its GDP. 5. The government’s ability to repay the national debt is governed only by the total assets of the economy.
When the money market is drawn with the value of money on the vertical axis, if the Federal Reserve sells bonds, then the money supply curve
a. shifts right, causing the price level to rise. b. shifts right, causing the price level to fall. c. shifts left, causing the price level to rise. d. shifts left, causing the price level to fall.
If the data show that periods of high economic growth rate are accompanied by high inflation rates, then changes in aggregate demand are the primary source of economic fluctuations.
Answer the following statement true (T) or false (F)
Too much of a good is produced if some external benefits of producing or consuming it are ignored by the private decision makers.
Answer the following statement true (T) or false (F)