Ceteris paribus, which of the following would generally cause an increase in the demand curve for new automobiles?
A. An increase in consumers' income.
B. The new models being perceived as ugly compared with old models.
C. A decrease in the price of new automobiles.
D. Consumer expectations that the price of new automobiles will be lower next year.
Answer: A
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Other things remaining the same, which of the following is likely to happen if there is a decrease in the price of cars?
A) There will be a decrease in both the wage rate and the employment levels in the petroleum extraction industry. B) There will be an increase in the wage rate and a decrease in the employment levels in the petroleum extraction industry. C) There will be a decrease in the wage rate and an increase in the employment levels in the petroleum extraction industry. D) There will be an increase in both the wage rate and the employment levels in the petroleum extraction industry.
In the figure above, when 40 units are produced the average fixed cost is
A) $4. B) $8. C) $12. D) $20.
The duration of a coupon bond increases
A) the longer is the bond's term to maturity. B) when interest rates increase. C) the higher the coupon rate on the bond. D) the higher the bond price.
Purchasing power parity holds when the exchange rate is equal to the product of the foreign price level and the domestic price level
a. True b. False Indicate whether the statement is true or false