If the price-consumption curve is upward sloping when the price of the good measured on the horizontal axis changes, then the demand curve for that good will be upward sloping
Indicate whether the statement is true or false
False. An upward-sloping price-consumption curve indicates that as the price of the good falls, more of both goods will be purchased. So, the demand curve for the good measured on the horizontal axis slopes downward.
You might also like to view...
The increased stability of the financial system in the United States since 1950 can help explain
A) why the United States has only experienced one recession since 1950. B) the severity of the 2007-2009 recession. C) the increase in the gap between potential GDP and real GDP. D) the decrease in severity of business cycle fluctuations.
Assuming the Federal Reserve makes an open-market purchase of a government security worth $10,000 . By writing a check to pay for this security, the Federal Reserve
a. reduces the balance of its assets by $10,000. b. reduces the balance of its liabilities by $10,000. c. neither reduces the balance of its assets nor the balance of its liabilities by $10,000. d. creates a new $10,000 liability against itself. e. both c and d are correct.
Price ceilings set below the equilibrium create:
a. externalities. b. unemployment. c. shortages. d. surpluses.
When regulatory requirements make it costly and complex to open a business,
A) the volume of trade will decline and economic growth will be retarded. B) the level of competition will increase. C) the likelihood government officials will provide favors to specific businesses and engage in corrupt practices will be reduced D) the volume of