"In the past five years the average price of our Chevrolets has risen about 6 percent a year, and each year we have sold 10 percent more cars than the previous year." How can this car dealer sell more cars as the price of the cars increases?
What will be an ideal response?
All else constant, an increase in demand will lead to both an increase in price and an increase in the quantity of cars sold. Alternatively, so long as demand increases by more than supply decreases, price and quantity exchanged will both increase.
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The form of contracting used throughout much of Asia:
a. relational contracting b. civil law c. criminalizing civil offenses d. common law e. all of the above
In practice, oligopolistic markets are:
A. usually protected by the government. B. fairly common. C. forbidden by the government. D. very rare.
All else equal, the jobs that are the least likely to be outsourced are those that:
A. require face-to-face communication. B. can be broken down into series of well-defined steps. C. can be done by a computer. D. do not involve face-to-face contact.
A decrease in the supply of loanable funds and an increase in the demand for loanable funds will:
A. Increase the interest rate and the quantity of funds loaned B. Decrease the interest rate and the quantity of funds loaned C. Increase the interest rate, but the quantity of funds loaned may either increase or decrease D. Decrease the interest rate, but the quantity of funds loaned may either increase or decrease