The demand curve for Widgets is given by QD = 6000 - 2y - 200p + 30pG, where QD is the quantity of widgets demanded, y is the per capita income and pG is the price of Gizmos. An increase in per capita income will cause
A) demand shifts left.
B) demand shifts right.
C) demand increases.
D) movement along the demand curve.
A
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In cases where a life insurance policy owner is not the same person as the insured, insurance companies often require that such purchases be for those with an "insurable interest"
For life insurance policies, close family members and business partners will usually be found to meet this test. In this case the purchaser is demonstrating that they would suffer an economic loss if the insured were to die. What economic argument could be made for why insurance companies would make such a restriction when it seems there might be a market for life insurance to people who wish to insure others for whom there is not such "insurable interest"?
A change in real GDP sums up changes in
A) prices alone. B) physical production alone. C) physical production minus changes in price. D) physical production and prices.
An increase in the general level of prices will tend to cause, other things the same ________
A) an increase in the real value of assets B) an increase in the real value of liabilities C) no change in the real value of liabilities D) a decrease in the real value of liabilities
Which of the following events would reduce the size of the "real-world" money multiplier?
a. Banks hold more excess reserves. b. Households hold less currency. c. The Fed increases the discount rate. d. The Fed reduces the required reserve ratio.