The graph illustrates the demand curve for soda. After a rise in the price of a soda from $1.00 a can to $2.00 a can, the quantity of soda demanded
A) decreases from 2 cans to 0 cans a day.
B) increases from 0 cans to 2 cans a day.
C) remains unchanged.
D) decreases from 1 can to 0 cans a day.
E) cannot be determined from the figure because the demand curve will shift to a new curve.
A
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Generally, ________ motivates firms to enter an industry, while ________ motivates firms to exit an industry.
A. accounting profit; accounting loss B. economic profit; economic loss C. economic profit; accounting loss D. accounting profit; economic loss
The decreasing slope of a production function reflects
A) diminishing returns. B) rising unemployment. C) decreasing costs. D) increasing aggregate demand.
What is allocative efficiency and how does it relate to the production possibilities frontier?
What will be an ideal response?
Discretionary fiscal policy
A. would have a larger effect on real GDP if the multiplier was smaller. B. may not have desired effects on real GDP because it leads to increases in aggregate demand. C. may not have desired effects on real GDP because of the time lags. D. may not have desired effects on real GDP because it leads to decreases in aggregate demand.