If we observe a decrease in the price of a good and an increase in the amount of the good bought and sold, this could be explained by
a. a decrease in the supply of the good.
b. a decrease in the demand for the good.
c. an increase in the demand for the good.
d. an increase in the supply of the good.
d. an increase in the supply of the good.
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If policy makers believe that the equilibrium wage rate is too low, policy makers can raise wages by legislating a minimum wage, that is, a wage
A) ceiling above the equilibrium wage. B) ceiling below the equilibrium wage. C) floor above the equilibrium wage. D) floor below the equilibrium wage.
A change in the interest rate will generally affect the
A) level of investment. B) level of consumption. C) the amount of money people want to hold. D) All of these.
If two commodities are perfect complements, the indifference curve is a straight line
a. True b. False Indicate whether the statement is true or false
In a perfectly competitive market, marginal revenue is the same as the market price
a. True b. False Indicate whether the statement is true or false