Which of the following will cause a rightward shift of the demand curve?
A) a decrease in the cost of production
B) a decrease in the price of the good
C) an increase in the expected future price of the good
D) all of the above
Answer: C
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In Figure 6-5, if price falls from point A to point B along the unit-elastic demand curve,
A. total expenditure remains unchanged. B. total expenditure increases. C. total expenditure decreases. D. total expenditure first increases and then declines.
Refer to the above figure. If the government imposes a price floor of $60
A) the quantity of goods that will be traded is 100. B) the quantity of goods that will be traded is 200. C) the quantity of goods that will be traded is 150. D) the quantity of goods that will be traded is 0.
Physical and human capital investments are
a. different in that the opportunity for economic profit is present for physical capital but not for human capital investments. b. different in that human capital decisions do not involve future income considerations, while physical capital investments do. c. similar in that nonmonetary considerations play an equally important role in both. d. similar in that both involve forgoing current income (and consumption) in an effort to achieve higher future income (and consumption).
Let us suppose that consumer expectations are optimistic and therefore consumer spending rises. Which of the following effects would likely take place?
An increase in aggregate demand A decrease in aggregate demand A decrease in aggregate supply An increase in aggregate supply