The figure above shows the market for iPods. Which of the following shifts the demand curve from D0 to D2?
A) a decrease in the price of iPods
B) a decrease in the price of Zunes, a substitute for iPods
C) an increase in the price of iPods
D) a decrease in people's incomes if iPods are a normal good
E) a requirement that all students at universities have an iPod
B
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Keynes's theory of the demand for money is consistent with
A) countercyclical movements in velocity. B) a constant velocity. C) procyclical movements in velocity. D) a relatively stable velocity.
Scarcity
a. exists because people have wants that are unlimited relative to the availability of resources to satisfy those wants b. applies when a resource is not freely available c. means that each society and each individual must make choices d. exists in all societies e. all of the above are true
When the monopolist decides to supply a given amount to the market, it will:
A. set the price lower than the demand curve to create a perceived shortage. B. set the price equal to marginal cost. C. only sell that amount if it charges what the demanders are willing to pay for that amount. D. set the price higher than what demanders are willing to pay for that amount.
Which of the following statements reflect the primary change in the mortgage market that played the major role in creating the housing crises in 2007 through 2009?
A. low interest in the mid 2000's. B. adjustable rate mortgages to low income citizens with low credit scores. C. the large increase in interest rates in 2007. D. the reduction in newly constructed housing.