According to the law of demand, if the price of a good increases, other things being equal, the quantity demanded will decrease
a. True
b. False
Indicate whether the statement is true or false
True
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If goods A and B are complements, then
A) the cross elasticity of demand between A and B is negative. B) the cross elasticity of demand between A and B is positive. C) their income elasticities of demand are both greater than 1. D) their income elasticities of demand are both less than 1.
Explain why the average total cost curve and the average variable cost curve get closer to each other as output expands
What will be an ideal response?
Aunt Rose owned a dress shop on 81st Street and Broadway in Manhattan, selling limited-edition dresses to wealthy clients. One day, her landlord tripled her rent. What effect would this have on her dress price in the short run, assuming she is following the rules of profit maximization?
What will be an ideal response?
Technological efficiency is
A) a necessary and sufficient condition for profit maximization. B) a sufficient but not necessary condition for profit maximization. C) a necessary but not sufficient condition for profit maximization. D) a theoretical construct with little connection to the real world.