Which factor will increase the demand for a product?
a. An increase in the price of a substitute product
b. An increase in the price of a complementary product
c. An unfavorable report on the value of the product
d. A decrease in the number of buyers
Answer: a. An increase in the price of a substitute product
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The evolution of macroeconomic theory
A) usually precedes and causes major macroeconomic events. B) usually is in reaction to major macroeconomic events. C) is evenly divided between causing and reacting to major macroeconomic events. D) proceeds rather independently of major macroeconomic events.
There are frequently situations where you have information on the conditional distribution of Y given X, but are interested in the conditional distribution of X given Y
Recalling Pr(Y = y = x) = , derive a relationship between Pr(X = x = y) and Pr(Y = y = x). This is called Bayes' theorem. What will be an ideal response?
Which of the following is not an idea advocated by Adam Smith?
a. Businesspersons conspiring to fix prices are a threat to the price system. b. Pursuit of private self interest with an invisible hand is the best way to promote the public interest. c. Government should control the economy. d. The government should provide for national defense and little else.
Which of the following statements is true?
A. Total utility is the extra satisfaction from the consumption of a good or service. B. Marginal utility is the amount of satisfaction received from all the units of a good or service consumed. C. The law of diminishing marginal utility states that as more of a good or service is consumed total utility decreases. D. Consumer equilibrium is a combination of goods and services consumed which maximizes total utility from a given budget.