Which of the following is an example of the law of demand?
A) A decrease in the price of milk is followed by an increase in milk purchases.
B) A decrease in the price of milk is followed by a decrease in milk purchases.
C) An increase in the price of milk has no effect on the amount of milk purchased.
D) The amount of milk purchased increases when the price is constant.
Answer: A) A decrease in the price of milk is followed by an increase in milk purchases.
You might also like to view...
What is one reason the eBay seller reputation system is important?
A) eBay transactions tend to be isolated, one-off transactions. B) eBay transactions tend to be repeat sales between the same seller and buyers. C) eBay transactions often involve stolen products. D) eBay transactions require a larger percentage than, say, Amazon transactions.
In the Keynesian model, planned investment is inversely related to
A) the interest rate. B) the level of income. C) the wage rate. D) the tax rate.
A buyer values a house at $525,000 and a seller values the same house at $485,000 . If sales tax is 8% and is levied on the buyer, then, what would be the highest price that the buyer would be willing to pay?
a. $525,000 b. $523,800 c. $485,000 d. $486,111
An increase in planned investment will shift the _____
a. aggregate demand curve rightward b. aggregate demand curve leftward c. aggregate supply curve rightward d. aggregate supply curve leftward e. consumption function upward