John argues that when the price of a good decreases, people will purchase less of the good. This statement is
A. inconsistent with the law of demand.
B. consistent with the law of supply.
C. referring to money prices.
D. consistent with the law of demand.
Answer: A
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High inflation helps people store wealth over time, which helps them to be able to smooth out their consumption over their lifetimes
Indicate whether the statement is true or false
Which of the following explains why managers of government agencies have little incentive to achieve operational efficiency?
What will be an ideal response?
Which of the following marketing pieces takes the concept of marginalism into account? Select one:
a. Computers, monitors and other technical equipment in local dumps are causing $1 million dollars in environmental damage. Vote yes to allocate $100,000 in cleanup spending. b. Help save the manatees. Contribute to the campaign to raise $10,000. c. Contribute $50 annually to the Heifer Foundation and give a chicken to a family living in poverty. This gift will help generate an additional $100 in household income through the sale of the eggs produced. d. Stephanie, a new college graduate, accepts the first job offer for $50,000 a year.
Holding all else constant, an increase in the real interest rate on U.S. assets will ________ the demand for dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; decrease B. decrease; decrease C. increase; increase D. decrease; increase