Assume the price of Coca-Cola increases. As a result, your real income decreases and you decrease the quantity of Coca-Cola purchased each month. This is an example of the:
a. income effect.
b. consumer price effect.
c. revenue effect.
d. substitution effect.
a
You might also like to view...
If a firm is willing to supply the 1,000th unit of a good at a price of $23 or more, we know that $23 is the
A) highest price the seller hopes to realize for this output. B) minimum price the seller must receive to produce this unit. C) average price of all the prices the seller could charge. D) price that sets the marginal benefit equal to the price. E) only price for which the seller is willing to sell this unit of the good.
If there's an increase in the future marginal product of capital in a large open economy, it causes the current account to ________ and saving to ________
A) fall; rise B) rise; remain unchanged C) fall; remain unchanged D) rise; rise
The supply and demand for money intersect at the equilibrium real interest rate, while the supply and demand curves for loanable funds intersect at the equilibrium real interest rate
a. True b. False Indicate whether the statement is true or false
A budget surplus is defined as:
A. a shortfall of revenues compared to expenditures. B. accumulated surpluses minus accumulated deficits. C. accumulated deficits minus accumulated surpluses. D. a shortfall of expenditures compared to revenue.