According to the law of demand, the higher the price, the lower the quantity demanded. But, five years ago the Dropouts used to sell only 50 tickets for their shows at $5 each. Today they sell 5000 tickets at $20 each
Does the change described above contradict the law of demand? A) Yes, because the price has fallen and the quantity demanded has fallen.
B) Yes, because the price has risen and the quantity demanded has risen.
C) No, because the supply has risen.
D) No, because other things weren't constant.
D
You might also like to view...
Refer to Figure 11-6. In the figure above which letter represents the average fixed cost curve?
A) A B) B C) C D) D
By taking the long position on a futures contract of $100,000 at a price of 115 you are agreeing to ________ a ________ face value security for ________
A) sell; $100,000; $115,000. B) sell; $115,000; $100,000. C) buy; $100,000; $115,000. D) buy; $115,000; $100,000.
A bubble happens when:
A. asset prices rise for a long time, even during a recession. B. asset prices rise higher and faster than can be explained by the fundamentals. C. asset prices rise faster than can be tracked with traditional statistical tools. D. asset prices rise higher than experts have predicted they would.
Unemployment compensation programs are called automatic stabilizers because payments increase during
A. both recessions and expansions. B. expansionary periods. C. periods of high unemployment. D. wartime only.