The law of demand is derived under the assumption of
A. constant consumer tastes and preferences.
B. constant marginal utility.
C. constant real incomes.
D. constant prices.
Answer: A
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Unanticipated inflation benefits some groups in the economy.
Answer the following statement true (T) or false (F)
There are still some fixed costs in the long run, such as rent.
Answer the following statement true (T) or false (F)
Which of the following will definitely occur when there is a simultaneous decrease in demand and a decrease in supply?
A. an increase in equilibrium quantity B. a decrease in equilibrium price C. an increase in equilibrium price D. a decrease in equilibrium quantity
According to the graph shown, when this economy is open to free trade without restriction, the amount imported is:
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.
A. 900.
B. 1250.
C. 650.
D. 1000.