Market demand curves may slope downward even if some individual demand curves do not because
A. the law of demand requires that this is true.
B. lower prices may bring more purchasers into the market.
C. merchants try to sell more at lower prices.
D. people believe expensive goods are better goods.
Answer: B
You might also like to view...
Which of the following effects best explains the downward slope of the aggregate demand curve?
A. An expectations effect B. A multiplier effect C. A substitution effect D. An interest-rate effect
Which of the following is true of equilibrium?
A) Equilibrium refers to a situation where an economic agent can be made better off without making anyone else worse off. B) Equilibrium refers to a situation where the government allocates resources among economic agents. C) Equilibrium refers to a situation where all economic agents are making sub-optimal choices and have an incentive to change behavior. D) Equilibrium refers to a situation where all economic agents simultaneously optimize after considering each other's actions.
A profit-maximizing monopolistic competitor continues production until ________
A) marginal revenue exceeds marginal cost B) marginal revenue equals marginal cost C) marginal revenue exceeds average revenue D) marginal revenue equals average revenue
If the price index was 100 in 2000 and 120 in 2010, and nominal GDP was $360 billion in 2000 and $480 billion in 2010, then the value of 2010 GDP in terms of 2000 dollars would be
A) $300 billion. B) $384 billion. C) $400 billion. D) $424 billion.