Assume that the demand schedule for product C is downsloping. If the price of C falls from $2.00 to $1.75:
a. The demand for C will rise
b. A smaller quantity of C will be demanded
c. The demand for C will fall
d. A larger quantity of C will be demanded
d. A larger quantity of C will be demanded
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The Federal Reserve System (The Fed) is the ________ incarnation of a central bank in the United States
A) first B) second C) third D) fourth
Linda earned an income of $3,000 per month, which has now increased to $3,500 per month. She saves 10 percent and spends the remainder on food, lodging, and other expenses. So far, she has managed to save $20,000. What is her marginal propensity to consume?
What will be an ideal response?
Why is elasticity of demand greater for goods that are a large share of a consumer's budget?
What will be an ideal response?
All of the following statements regarding the marginal revenue product (MRP) curve and the demand for labor are true EXCEPT
A. under conditions of perfect competition, MRP equals marginal physical product multiplied by the product's price. B. an increase in the market demand for a given product decreases the product's price. C. an individual firm's demand for labor is its MRP curve. D. the demand for labor is a derived demand.