The prices that people are willing to pay for goods and services mostly depend on:
a. the total utility derived from the goods and services.
b. the marginal utility derived from the goods and services.
c. the availability of raw materials for producing the goods and services.
d. the cost of producing the goods and services.
e. whether the goods are legal, since the laws affect the position of both supply and demand curves.
b
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When banks fail during a financial crisis, ________
A) the removal of these weak institutions serves to strengthen the financial system B) the elimination of competitors is likely to spark a credit boom C) there is a loss of information that can cause the crisis to worsen D) surviving banks resort to financial engineering to retain customers
For any competitive labor market, what change would have to occur to cause the labor supply to increase and shift the supply curve right?
A. Number of firms increases B. Opportunity cost of work decreases C. Number of workers decreases D. Opportunity cost of work increases
A period of sustained growth in output in an economy is referred to as a(n) _____
a. expansion b. contraction c. peak d. trough e. recession
The income elasticity of demand is:
A. the percentage change in quantity demanded divided by the percentage change in price. B. the percentage change in quantity demanded divided by the percentage change in income. C. the percentage change in income divided by the percentage change quantity demanded. D. the percentage change in price divided by the percentage change in income.