Assume the D curve for orange juice (a normal good) in the US has shifted to the left. Which of the following factors has most likely caused this to happen?
a) Increase in the P of orange juice.
b) Increase in the availabilty of energy drinks (substitute products).
c) Increase in consumer income.
d) Decrease in the supply of orange juice.
e) Decrease in the P of orange juice.
b) Increase in the availabilty of energy drinks (substitute products).
You might also like to view...
Bonds that are sold in a foreign country and are denominated in a currency other than that of the country in which it is sold are known as
A) foreign bonds. B) Eurobonds. C) equity bonds. D) country bonds.
The activist response to the monetarist platform says that
A) private spending may show some stability, but monetary or fiscal policy designed to stabilize it will just make things worse. B) private spending is stable partly because consumption spending is based on permanent income. C) even if prices are not completely flexible in the short-run, given time there is enough flexibility for the system to return to the natural level of real GDP. D) None of the above.
The supply and demand mechanism will bring an international market into equilibrium a. at a price below the domestic price in an exporting country
b. where domestic supplies are less than domestic demand in an exporting country. c. with an exporting nation's price higher than the importing nation's price. d. when the quantity of exports supplied by the exporters beyond their domestic consumption is equal to the quantity of imports demanded by the importers.
Using the standard 45-degree line diagram, how does a decrease in investment spending effect the expenditure schedule?
a. It increases the slope of the expenditure schedule. b. It decreases the slope of the expenditure schedule. c. It shifts the expenditure schedule downward. d. It shifts the expenditure schedule upward.