If the marginal propensity to save is 0.1, then a $10 million decrease in disposable income will
A) increase consumption by $9 million. B) decrease consumption by $1 million.
C) increase consumption by $1 million. D) decrease consumption by $9 million.
D
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In order to derive the market supply curve from individual supply curves, we add up the:
A. Various prices that individual sellers are charging for the product B. Various quantities that individual sellers want to sell at specific price levels C. Total number of sellers in the market at a given time D. Costs that all individual sellers incur in producing the product
Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?
a. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. b. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
Why are music, television, and movie companies concerned about their products being posted to Internet Web sites such as YouTube?
What will be an ideal response?
Rolls-Royce may actually sell fewer cars at lower prices due to the “snob effect.”
Answer the following statement true (T) or false (F)