Which of the following will cause the demand curve for bottled water to shift right, if bottled water is a normal good?
A. a decline in population
B. a fall in average incomes of bottled water consumers
C. a successful advertising campaign linking bottled water to lower cholesterol
D. a fall in the price of bottled water
Answer: C
You might also like to view...
The table above gives data for the nation of Pearl, a small island in the South Pacific. If aggregate demand increases so that the quantity of real GDP demanded is $6 billion more at each price level, the new equilibrium real GDP is ________, and the nation is now experiencing a(n) ________.
A) $22 billion; inflationary gap B) $22 billion; recessionary gap C) $28 billion; inflationary gap D) $28 billion; recessionary gap E) $25 billion; equilibrium
In general, activists are ________ about the ability of fiscal and monetary policies to stabilize AD and non-activists are ________
A) pessimistic; optimistic B) optimistic; optimistic C) pessimistic; pessimistic D) optimistic; pessimistic
It has been argued that state-subsidized ____ programs have benefited the middle and upper-income quintiles more than the poor
a. food stamp b. housing subsidy c. higher education d. Medicaid
Under a gold standard, if the U.S. has a trade deficit with Japan,
A. the U.S. would receive gold from Japan, the Japanese money supply would decline, and the price level would fall in Japan. B. the U.S. would receive gold from Japan, the U.S. money supply would increase, and the U.S. price level would rise. C. the U.S. would lose gold to Japan, the U.S. money supply would increase, and the price level in the U.S. would increase. D. the U.S. would lose gold to Japan, the U.S. money supply would decline, and the U.S. price level would fall.