A shift to the right in the demand curve for product A can be most reasonably explained by saying that:
A. the price of A has decreased and, as a result, consumers want to purchase more of it.
B. consumer incomes have declined and they now want to buy less of A at each possible price.
C. consumer preferences have changed in favor of A so that they now want to buy more at each possible price.
D. the price of A has increased and, as a result, consumers want to purchase less of it.
Answer: C
You might also like to view...
Water is essential to life, while diamonds are not. However, water is cheap and diamonds are expensive. This paradox can be resolved by focusing on:
A) total utility rather than average utility. B) average utility rather than marginal utility. C) marginal utility rather than total utility. D) total utility rather than marginal utility. E) average utility rather than total utility.
The government of Healthyland imposes a tax on sellers of salt. The tax is $0.10 per pound. With no tax, the market price of salt is $0.40 per pound. The demand for salt is perfectly inelastic, and the elasticity of supply is 1.5
With the tax, the price that sellers of salt in Healthyland receive and keep is A) $0.40 per pound. B) $0.35 per pound. C) $0.45 per pound. D) $0.50 per pound.
Applied to any investment, the phrase "there's no such thing as a free lunch" means that higher returns come with lower risks, and lower returns come with higher risks.
Answer the following statement true (T) or false (F)
Suppose in the market for used cars, buyers would be willing to pay $9,000 for a car in good condition, while buyers would have to incur a cost of $3,500 to repair a car in poor condition. Assume a risk-averse buyer is aware that some of the cars are lemons, but is uninformed about the probability of a car being in good condition or otherwise. What price would this buyer, seeking only to minimize
risk, be willing to pay for a car? a. $3,925 b. $5,500 c. $7,775 d. $5,850