Specifically, what might cause the quantity demanded of a particular good to double at a particular price?
This results from a rightward shift in the demand curve, which could be caused by an increase in consumer income, an increase in advertising expenditure, reduction in the price of a complementary good, or an increase in the price of a substitute good.
You might also like to view...
Sam's company produces output with labor and capital. At the current quantities of labor and capital, the following information is obtained: the output produced by spending one more dollar on labor exceeds the output produced by spending one more
dollar on capital. In the long run, is Sam minimizing costs? If not, explain how capital and labor should change (holding output constant) and how this relates to the condition.
A comparison of a traditional price support program and the Brannan plan shows that
a. consumers would clearly prefer the traditional program. b. farmers would clearly prefer the Brannan plan. c. losses due to inefficiency are completely avoided under the Brannan plan. d. the more elastic the supply and demand curves, the lower the relative cost of the Brannan plan will be. e. All of the above.
Calculate the inflation rate for a country where the GDP deflator rises from 120 to 165
Stock prices fell throughout much of 2007 and 2008 and many investors decided to switch their funds into the bond market. What only about 30 percent of surveyed investors knew was that as bond prices rise, interest rates
A. fall in reaction to the increased demand for bonds. B. fall in reaction to the decreased demand for bonds. C. rise in reaction to the increased demand for bonds. D. rise in reaction to the decreased demand for bonds.