If the price of a good is expected to rise in the future, its
A. demand curve will shift to the right.
B. supply curve will shift to the left.
C. demand curve will shift to the left.
D. a) and b).
Answer: D
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If the demand for used cars decreases after the price of a new car falls, used cars and new cars are
A) substitute goods. B) inferior goods. C) normal goods. D) complementary goods. E) The questions errs because it is the quantity of used cars, NOT the demand for used cars, that will change when the price of a new car falls.
An activity should be undertaken if the marginal benefit of the activity is greater than the marginal cost of the activity
Indicate whether the statement is true or false
If the consumption of a good by one person reduces its consumption by others, then the good is
A. nonrivalrous in consumption. B. rivalrous in consumption. C. nonexcludable. D. excludable. E. b and d
The largest component of aggregate expenditure is
a. consumption spending b. investment spending c. government purchases d. net exports e. a virtual tie between consumption spending and government purchases