The income and substitution effects are part of the reason why
A. the demand curve is downward-sloping.
B. the supply curve is upward-sloping.
C. the demand curve is upward-sloping.
D. the supply curve is downward-sloping.
Answer: A
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If your nominal income in 2014 is $50,000, and prices increase by 50% between 2014 and 2017, then to have the same real income, your nominal income in 2017 must be
A) $50,000. B) $75,000. C) $100,000. D) $150,000.
What are three reasons that the interest-rate parity condition may not always hold?
What will be an ideal response?
If Good Smells, a perfume manufacturer, purchases several local retail shops to sell their perfumes, this is an example of ________.
A) outsourcing B) divestiture C) backward integration D) forward integration
You are planning a graduation trip to Mexico. Other things the same, if the dollar appreciates relative to the peso, then
a. the dollar buys fewer pesos. Your hotel room in Mexico will require fewer dollars. b. the dollar buys fewer pesos. Your hotel room in Mexico will require more dollars. c. the dollar buys more pesos. Your hotel room in Mexico will require fewer dollars. d. the dollar buys more pesos. Your hotel room in Mexico will require more dollars.