When demand changes and the demand curve shifts, equilibrium price and equilibrium quantity change in the same direction.
Answer the following statement true (T) or false (F)
True
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When a consumer is at his or her best affordable point, the budget line
A) is flatter than the highest attainable indifference curve. B) is tangent to the highest attainable indifference curve. C) is steeper than the highest attainable indifference curve. D) does not touch the highest attainable indifference curve.
If a commodity's price is above its marginal cost, the market will tend to produce too much of the good
a. True b. False Indicate whether the statement is true or false
What is the best way to ensure that individuals with pre-existing health conditions have access to affordable insurance coverage?
a. Place everyone in the same risk pool and charge everyone, sick and healthy, the same community-rated premium. b. Place those with pre-existing conditions into separate risk pools, charging them risk-rated premiums, and provide taxpayer financed subsidies to make the coverage affordable. c. Mandate that every provider accept individuals with pre-existing conditions on a pro bono basis and subsidize the cost of their care by charging higher prices to those with insurance. d. Allow those individuals with pre-existing conditions to purchase insurance based on their own health status.
How does the aggregate-demand curve shift when increased uncertainty and pessimism about the future of the economy lead firms to desire less investment spending?
a. The curve shifts to the right. b. The curve shifts to the left. c. The curve does not shift at all. d. The curve first shifts to the right and then shifts to the left.