The law of demand refers to the:
a. inverse relationship between the price of a good and the willingness of consumers to buy it.
b. price increase that results from an increase in demand for a good of limited supply.
c. inverse relationship between the price of a good and the quantity offered for sale.
d. increase in the quantity of a good available when its price increases.
a
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The absence of clear property rights
A) is common in many developing nations. B) encourages creative destruction. C) is caused by capital deepening. D) all of the above.
For the monopolistically competitive firm
A) P = MR > AR. B) P > MR = AR. C) Price (P) = Marginal Revenue (MR) = Average Revenue (AR). D) P = AR > MR.
What happens to aggregate supply when production costs adjust completely to price increases?
a. Both equilibrium output and prices increase b. Only prices rise; equilibrium output remains fixed c. Only equilibrium output rises; equilibrium prices remain fixed d. Equilibrium output falls while prices rise e. Both equilibrium output and prices remain fixed
The aggregate demand curve is the sum of all demand curves of all goods and services in the economy.
Answer the following statement true (T) or false (F)