If the price of music downloads decreases, which of the following is most likely to occur?
a. Quantity demanded will decrease.
b. Quantity demanded will increase.
c. Demand will increase
d. Demand will decrease.
b
You might also like to view...
Investment spending will increase when
A) the interest rate rises. B) the corporate income tax increases. C) firms become more pessimistic about earning future profits. D) business cash flow increases.
Based on the graph showing how the subprime share of home mortgages grew rapidly before the big decline, by Q2 of 2008, the gap between adjustable mortgage rates and the share of subprime mortgages was ______.
a. the greatest it had ever been
b. the smallest it had ever been
c. narrowing
d. expanding
A multinational organization dedicated to providing financial and technical assistance to developing countries is called the:
A. World Trade Organization. B. United Nations Development Plan. C. World Bank. D. International Monetary Organization.
Conclusions about the misallocation of resources under conditions of monopoly depend, in part, on the crucial assumption that
A. the marginal cost curve of a monopolist is different from that of a perfectly competitive firm. B. monopolies are interested in economic profits and competitive firms are not. C. the economies of scale exist only in perfectly competitive industries. D. the monopolization of a perfectly competitive industry does not change the cost structure of the industry.