Refer to Figure 2.1. A movement from point a to point c is most likely caused by:
A. a decrease in the price of the good.
B. an increase in consumers' incomes, assuming the good is normal.
C. a decrease in the price of a complementary good.
D. an increase in the price of the good.
A. a decrease in the price of the good.
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Beach resorts raise their prices during the summer months and yet more people book rooms at those times. Is this a violation of the law of demand?
When goods are produced privately, but the cost of their purchase is paid for by the taxpayer or some other third party,
What will be an ideal response?
Quantity restrictions become more valuable to those holding the rights to sell the good when:
A. supply decreases. B. supply increases. C. demand decreases. D. demand increases.
Refer to the above diagram. A shift in the production possibilities curve from AB to CD is most likely due to:
A. an increase in the spending of business and consumers. B. an increase in government purchase of the economy's output. C. an increase in the quantity and quality of labor resources. D. the use of the economy's resources in an efficient way.