During the winter of 1997-1998, the northeastern United States experienced warmer than usual conditions. The price of home heating oil was less than it was during the previous winter, but people bought less home heating oil
This contradicts the Law of Demand. Indicate whether the statement is true or false
False. The statement claiming a contradiction confuses a change in quantity demanded with a change in the demand curve. The law of demand refers to movements along a given demand curve. The mild weather caused a leftward shift of the demand curve.
You might also like to view...
Contractionary monetary policy will result in
A) higher interest rates. B) increased rates of inflation. C) a leftward shift in the long-run Phillips curve. D) an upward shift in the short-run Phillips curve.
The arguments of Kessel and Alchien (1959) on the terms of trade and the question of "who paid for the Civil War (1861–1865)" conclude that 40 percent of the war's burden fell on
(a) those who exported manufactures. (b) those who purchased imports. (c) farmers alone. (d) the economy as a whole.
”Peak” pricing can best be defined as
A. setting higher prices to reflect higher demand. B. pricing to obtain maximum profit. C. setting price higher when demand is more elastic. D. raising price to determine elasticity.
_______________________: costs incurred by 3rd parties to a transaction.
Fill in the blank(s) with the appropriate word(s).