When Sonoma Vineyards reduces the price of its Cabernet Sauvignon from $15 a bottle to $12 a bottle, the result is an increase in
A. the supply of this wine.
B. the demand for this wine.
C. the quantity of this wine demanded.
D. the quantity of this wine supplied.
Answer: C
You might also like to view...
One goal a firm tries to achieve when it advertises a product is to
A) make the demand curve for the product more elastic. B) make the demand curve for the product unitary elastic. C) make the demand curve for the product more inelastic. D) shift the demand curve for the product to the left.
The assumption that preferences are complete:
A) means that a consumer will spend her entire income. B) is unnecessary, as long as transitivity is assumed. C) recognizes that there may be pairs of market baskets that cannot be compared. D) means that the consumer can compare any two market baskets of goods and determine that either one is preferred to the other or that she is indifferent between them.
When firms enter a monopolistically competitive market: a. product variety diminishes
b. the demand curves of established firms shift to the right. c. prices fall. d. profits increase.
If the demand curve for a good is unit elastic within a specific price range, this implies that within that price range the
a. consumers do not react to a change in price b. quantity demanded remains unchanged c. good has no substitutes d. good has no complements e. percentage change in the quantity demanded equals the percentage change in price