A movement upward and to the left along a given demand curve is called a decrease in demand
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following would be considered an example of fiscal policy?
A. Provision of additional cash to the banking system. B. A reduction in income tax rates. C. A broad government initiative to reduce the country's reliance on agriculture and promote high-technology industries. D. Interest rate hikes generated by a reduction in the money supply.
Along a perfectly vertical demand curve, the price elasticity of demand
A) equals 0. B) is greater than 0 but less than 1.0. C) equals 1.0. D) is negative.
If a country begins allowing free international trade in a good, and as a result, it increases imports of that good
a. domestic producers gain more than domestic consumers lose. b. domestic producers lose more than domestic consumers gain. c. domestic consumers gain more than domestic producers lose. d. domestic consumers lose more than the domestic producers gain.
Behavioral economists examine choices that consumers make that are not economically rational. Economists generally assume that people are rational; that is, they weigh the benefits and costs of an action and choose an action only if the benefits outweigh
the costs. Why do consumers not act rationally when the result is that they make themselves worse off? What will be an ideal response?