What does the demand curve for a product reflect?
a) the quantity consumers are able to purchase
b) the value of the product to consumers
c) the cost of the product to consumers
d) the price the product will sell for in the market
Ans: b) the value of the product to consumers
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Suppose the nominal interest rate on a savings bond is 7 percent a year and the inflation rate is 4.5 percent a year. How much is the real interest rate?
A) 4.5 percent B) 1.56 percent C) 2.5 percent D) 7 percent E) 11.5 percent
Economies of scale
A. require inputs’ MPP to fall as output increases (everything else equal). B. pertain to the long run only. C. refer to increased output generalized by an increase in the quantity of a single input. D. imply that the AC curve will fall continuously as output increases in the short run.
Use the above table. The data shows that the firm
A) is hiring in a perfectly competitive labor market. B) is selling its output in a perfectly competitive market. C) is a monopsonist. D) is selling its output in an imperfectly competitive market.
Technological advances in recycling make it possible to produce a greater quantity of paper from a given quantity of recycled newspapers. Predict the likely impact on the supply curve for paper. a. There is a movement down along the supply curve. b. There is a movement up along the supply curve. c. The supply curve shifts to the left
d. The supply curve shifts to the right.