Suppose all of the major computer manufacturers announced that beginning next month there would be major price reductions on their computers. This would cause the current demand for computers to
a. increase.
b. decrease.
c. remain unchanged.
d. increase if the demand for computers was relatively inelastic, but decrease if the demand for computers was relatively elastic.
B
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A level of GDP cannot be at equilibrium when aggregate demand exceeds output because firms will notice that
A. inventory stocks are building up. B. inventory stocks are being depleted. C. their profits are negative. D. many of their workers have little to do.
Aggregate demand changes when government expenditure on national defense increases by $100 billion. Aggregate demand ________ by ________ than $100 billion because government expenditure ________ induced expenditure
A) decreases; more; decreases B) decreases; less; increases C) increases; less; increases D) increases; more; increases E) increases; more; decreases
Refer to Figure 12-12. Consider a typical firm in a perfectly competitive industry that makes short-run profits. Which of the diagrams in the figure shows the effect on the industry as it transitions to a long-run equilibrium?
A) Panel A B) Panel B C) Panel C D) Panel D
Which of the following characteristics is least unique to a market system?
A. the widespread use of money B. freedom of enterprise and choice C. private ownership of property resources D. competition among buyers and sellers pursuing monetary returns