If hot dogs are an inferior good, a decrease in income will cause the equilibrium price of hot dogs to rise
Indicate whether the statement is true or false
True
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Given full-employment output = $2,800, equilibrium real GDP = $2,500, and MPS = 0.25, which of the following changes would most likely bring the economy to a full-employment level of real GDP?
a. $300 decrease in taxes. b. $75 increase in government spending. c. $75 decrease in taxes. d. $300 increase in government spending. e. $75 decrease in government spending.
Refer to the above figure for a particular good. The rightward shift of the curve could have been caused by
A. an increase in the price of a substitute good. B. a decrease in the price of that good. C. an increase in the price of a complementary good. D. a decrease in the price of an input.
Decision makers in oligopolistic firms must devise a strategy. One that yields the highest benefit, regardless of what the other players do is a
A) pricing strategy. B) rule-of-thumb strategy. C) dominant strategy. D) revenue strategy.
If the real interest rate increases:
A. The investment demand curve will shift to the right B. The investment demand curve will shift to the left C. There will be a movement upward along the investment demand curve D. There will be a movement downward along the investment demand curve