If there is an expectation that the price of a good will increase in the next month, this would immediately
A. move its demand curve to the right.
B. cause a movement along the demand curve to a (higher price, lower quantity) point.
C. move its demand curve to the left.
D. cause a movement along the demand curve to a (lower price, higher quantity) point.
Answer: A
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When a competitive equilibrium is achieved in a market
A) the total net benefit to society is maximized. B) the total benefits to consumers are equal to the total benefits to producers. C) economic surplus equals the deadweight loss. D) all individuals are better off than they would be if a price ceiling or price floor was imposed by government.
Mario's Pizza wants to prevent Angelo's Pizza from entering the pizza delivery market. If Mario's Pizza advertises that it will always undercut any competitor's price, the effect of advertising ________ Mario's Pizza's profits due to its cost and ________ Mario's Pizza's profits due to a(n) ________ in its demand.
A) increases; increases; increase B) decreases; decreases; increase C) decreases; decreases; decrease D) decreases; increases; increase
A decrease in the rate of interest, other things being equal, will cause a:
a. rightward shift of the investment demand curve. b. movement upward along the investment demand curve. c. movement downward along the investment demand curve. d. leftward shift of the investment demand curve.
In principle, we can
a. ignore positive statements when choosing among various public policy alternatives. b. ignore normative statements when choosing among various public policy alternatives. c. confirm or refute positive statements by examining evidence. d. confirm or refute normative statements by examining evidence.