Which of the following best illustrates the concept of "derived demand"?
a. An increase in the wages of autoworkers leads to an increase in the demand for robots in automobile factories.
b. An auto firm decides to supply more minivans when there is a decrease in the demand for station wagons.
c. An increase in the price of gasoline leads to an increase in the demand for small cars
d. An automobile firm faces an increase in the demand for cars it supplies to the market, which leads to an increase in the demand for autoworkers.
d
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Capacity utilization increases. What is the impact on aggregate expenditures and income?
A) Both increase. B) Both decrease. C) Aggregate expenditure increases and income decreases. D) Aggregate expenditure decreases and income increases.
Interest is a payment for deferred
a. taxation b. saving c. consumption d. investment e. none of the above
Country Y has fifteen thousand acres of land and forty-five thousand laborers, whereas the Rest of the World has one hundred thousand acres of land and two hundred thousand laborers. These countries produce a labor-intensive Good A, and a land-intensive Good B. When trade opens up between these countries, it can be inferred that Country Y will
A. import both goods. B. export both goods. C. export Good B, and import Good A. D. export Good A, and import Good B.
If the quantity of tacos is measured along the horizontal axis and the quantity of movies is measured along the vertical axis, and the price of a taco is $2.00 while the price of a movie is $12, then the slope of the budget line is
A. -1/3. B. -1/6. C. -6. D. -3.5