Other things being equal, an increase in the price of gasoline will decrease the quantity demanded for gasoline
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose that demand for a product falls, but prices are sticky. What is likely to happen to prices and output in that market, in the short run?
What will be an ideal response?
In 2003, Congress passed a tax cut that included a reduction in the marginal tax rate on stock dividends. This essentially increased the after-tax rate of return on stocks that offer dividends
Using the loanable funds market, describe what will happen to saving, investment, economic growth, the real interest rate, and the quantity of loanable funds exchanged.
If the Chinese government were to begin selling large quantities of its dollar-denominated assets, how might that affect China's economy and the U.S. economy?
What will be an ideal response?
Refer to the graph shown. The difference between total surplus in equilibrium and total surplus when price is $8.15 and quantity is 220 is:
A. 600. B. 405. C. 423.5. D. 810.