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.
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A firm's ______ shows the least-cost input combinations at all possible levels of output for fixed input prices.
A. cost function B. output expansion path C. isocost line D. efficient production frontier
When demand is elastic
A) a proportionately small change in price leads to a proportionately large change in quantity supplied. B) a proportionately small change in price leads to a proportionately small change in quantity supplied. C) a proportionately small change in price leads to a proportionately large change in quantity demanded. D) a proportionately small change in price leads to a proportionately small change in quantity demanded.
In the mid-1990s, cattle ranchers in the United States kept raising cattle even though prices were at a ten-year low and below average total cost. What is the likely explanation for this?
A) Continuing to operate resulted in smaller losses than would have been incurred by shutting down. B) The ranchers were hoping to receive government subsidies. C) The exit costs were too high. D) Cattle is an important source of protein and its production is essential for the United States.
Which of the following is the best example of a firm that competes in a monopolistically competitive market?
A) the U.S. Postal Service B) Microsoft C) a movie theater D) an automobile manufacturer