What might cause a demand curve to shift to the right?
A. An increase in the price of a complement
B. A decrease in the price of a substitute
C. An increase in the price of a substitute
D. An increase in the product's own price
Answer: C
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In the figure above, when the price falls from $5 to $4, the price elasticity of demand is
A) 2. B) 3. C) 0.75. D) 1.5. E) 0.33.
Government spending in the United States has grown over time and now accounts for more than forty percent of United States national income. Does this mean that government has been consistently running a budget deficit?
What will be an ideal response?
A budget philosophy using fiscal policy to achieve the economy's potential GDP, rather than balancing budgets either annually or over the business cycle, is termed: a. budget finance
b. functional finance. c. crowding out. d. crowding in. e. deficit finance.
What causes the aggregate supply curve to have an upward slope in the short run, but a vertical slope in the long run?
What will be an ideal response?