Higher prices tend to reduce the quantity demanded

What will be an ideal response?


by a greater amount as time goes by because time enables consumers and producers to
devise better substitutes.

Economics

You might also like to view...

Excess demand in an unregulated market will cause the price of a product to fall

Indicate whether the statement is true or false

Economics

The above figure shows the demand and marginal cost curves for a monopoly. Under monopoly, consumer surplus equals

A) a + b. B) a + b + c. C) a + b + c + d + e + f. D) None of the above.

Economics

Consider two people, Sandy Roos, who earns $25,000 . and Gary Behrman, who earns $50,000 . If the current flat-tax rate is 20 percent, then

a. Gary would prefer a poll tax to a flat tax b. Sandy would prefer a poll tax to a flat tax c. Gary and Sandy both pay the same amount of tax d. Sandy would prefer the flat tax to a progressive income tax e. Gary would prefer a progressive income tax to the flat tax

Economics

If a firm is earning a negative economic profit, it means that:

A. the resources should not be invested in other business opportunities. B. the opportunity cost is smaller than what the firm is earning. C. more profits could be earned with the same resources in another industry. D. it must be earning negative accounting profit.

Economics