If quantity demanded decreased by 3 units at each price, you would conclude that
A. demand increased.
B. demand decreased.
C. supply increased.
D. supply decreased.
B. demand decreased.
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Suppose there are 100 consumers with identical individual demand curves. When the price of a movie ticket is $8, the quantity demanded for each person is 5 . When the price is $4, the quantity demanded for each person is 9 . Assuming the law of demand holds, which of the following choices is the most likely quantity demanded in the market when the price is $6?
a. 700 b. 1,200 c. 400 d. 1,000 e. 100
In a liquidity trap situation: a. The Fed could not appreciably lower short term interest rates
b. If the Fed added reserves to the banking system, it would have little effect on investment. c. Traditional monetary policy would be relatively weak in its effects on aggregate demand. d. All of the above are true.
Billionaires get most or all of their income from
A. wages and salaries. B. property. C. government transfer payments.
If demand is estimated using the empirical specification Q = 1n a + b1nP + c1nM + d1nPR , then an equivalent expression for demand is
A. Q = abPcMdPR. B. Q = a + bP +cM + dPR. C. lnQ = a + bP + cM + dPR. D. Q = ea + bP + cM +dPR. E. none of the above