Which of the following would cause a change in the quantity demanded of a product?
A. a higher income
B. a higher price
C. expectations of future price increases
D. All of these are correct.
Answer: B
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Which of the following statements is true?
a. Expected inflation rate = real interest rate - nominal interest rate. b. Nominal interest rate = real interest rate + expected inflation rate. c. Real interest rate = nominal interest rate + expected inflation rate. d. Nominal interest rate = real interest rate - expected inflation rate. e. Expected inflation rate = nominal interest rate + real interest rate.
Leisure includes all of the following except
A) sleep. B) home yardwork. C) market work. D) recreational activities.
Suppose the typical consumer only purchases food and clothing, and her utility can be expressed as U = F ? C. Currently, food costs $5 per unit and clothing costs $2 per unit. Her income is $70
If the price of food increases to $6, compare the resulting Laspeyres price index with a true cost of living index.
The primary source of purchasing power used to buy imported goods is
What will be an ideal response?