Are there ever exceptions to the law of demand?
When consumers associate quality with high price (name-brand preferences, for example), the result is an upward-sloping demand curve. Similarly, "snob appeal," buying because the good is priced higher than other goods in the same general category, produces a market demand curve that slopes upward.
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A rightward shift of the labor demand curve during a recession due to a government policy leads to ________ if wages are flexible
A) a fall in prices B) a decrease in real wages C) a fall in interest rates D) an increase in employment
Any market that we are studying and the markets for the related inputs must all be in equilibrium at the same time. This leads to:
A. simultaneous equilibrium effects. B. partial equilibrium effects. C. general equilibrium effects. D. equilibrium-induced changes.
The greater the differences in demand elasticities of consumers within a market, the more the monopolist benefits from charging a uniform price for his product
Indicate whether the statement is true or false
To approximate the percentage change in real income over any period of time,
a. we need to subtract the percentage change in nominal income from the inflation rate b. we need to subtract the rate of inflation from the percentage change in nominal income c. we need to divide the percentage change in nominal income by the inflation rate d. we need to multiply the change in income by the inflation rate e. we need to multiply the nominal percentage change in income by the percentage change in inflation rate