A higher price reduces the quantity of a product demanded because
A. the purchasing power of individuals increases.
B. individuals will buy more of the product and less of its substitutes.
C. the financial assets of individuals increase.
D. individuals will buy less of the product and more of its substitutes.
Answer: D
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If firms in an oligopolistic industry successfully collude and form a cartel, what price and output will result?
A) the monopoly price and output B) the competitive price and output C) the monopolistically competitive price and output D) a price higher than the monopoly price and, because there is more than one firm in the industry, more output than the monopoly amount E) a price lower than the competitive price and, because there are only a few firms in the industry, less output than the competitive amount
This __________ declared that price discrimination is illegal especially when it decreases competition
a. Robinson-Patman Act b. Sherman Antitrust Act of 1890. c. Merger Act d. Federal Trade Commission Act.
Both parties gain in a voluntary exchange.
Answer the following statement true (T) or false (F)
If a firm shuts down in the short run, then
a. total revenue and total cost drop to zero b. total revenue drops to zero, but the firm must still pay its fixed cost c. total revenue drops to zero, but the firm must still pay some variable cost d. total cost drops to zero, but the firm still earns some residual revenues e. neither total revenue nor total cost drops to zero