Each year Apple Computers produces a new line of IPods with greater storage capacity and more features. Sales continue to soar even though the prices each year rise as well
Is this a refutation of the law of demand or is there something else going on here that doesn't meet the eye?
The law of demand states that there will be a inverse relationship between price and quantity demanded all other things being equal. In this case the good itself is no longer the same good. Its storage capacity and other features have simply drawn more customers.
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Of the following OECD countries, which has the highest life expectancy at birth?
A) the United Kingdom B) Japan C) Canada D) the United States
In case of a decrease in product prices:
A) the quantity effect always dominates the price effect. B) the price effect always dominates the quantity effect. C) when the price effect dominates the quantity effect, total revenue increases. D) when the quantity effect dominates the price effect, total revenue increases.
Consider a small open economy with desired national saving of Sd = 1000 + 1000rw and desired investment of Id = 1000 - 500rw. Calculate national saving, investment, and the current account balance in equilibrium when the real world interest rate is
(a) rw = 0.025. (b) rw = 0.05. (c) rw = 0.0.
A rise in the price of a nation's currency relative to foreign currencies is called
a. appreciation b. depreciation c. surplus on current account d. foreign exchange e. devaluation