If inventories are being depleted, firms may respond by cutting prices.
Answer the following statement true (T) or false (F)
False
You might also like to view...
The gains from trade include:
i. lower prices from competition ii. greater output from specialization iii. greater variety of goods and services available A) ii only B) i and iii only C) i and ii only D) i, ii, and iii E) ii and iii only
If the price level rises by 2 percent and workers' money wages increase by 2 percent, then the
A) quantity of labor supply decreases. B) quantity of labor supply increases. C) quantity of labor supplied does not change because there is no change in the real wage rate. D) More information about the dollar change in the price level and money wage rate are needed to answer the question.
The price of a bushel of corn next year is a ________ variable because the price ________ known with certainty.
A) known; is not B) random; is C) random; is not D) known; is
Assume mortgages and houses are complements in consumption; if the price of mortgages decreases (decreases in interest rates), we would expect to see
a. An increase in demand for houses b. An decrease in demand for houses c. An increase in the quantity of houses demanded d. An decrease in the quantity of houses demanded