Beach resorts raise their prices during the summer months and yet more people book rooms at those times. Is this a violation of the law of demand?
No. During summer months, the demand for beach resort accommodations tends to increase, pushing up both prices and occupancy for the duration. An increase in demand (a shift of the curve. occurs. This does not violate the law of demand, which states that there is an inverse relationship between price and quantity demanded, all other things being equal.
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When a market is in surplus, there is pressure for the price to move upward
a. True b. False Indicate whether the statement is true or false
Each of the following are characteristics of a typical indifference curve map except
a. moving northeast to a new indifference curve will increase utility. b. points on the same indifference curve yield equal utility. c. the axes represent levels of utility for each of the goods. d. indifference curves cannot cross.
If output growth exceeds population growth for a country, then:
A.) Average living standards will increase. B.) GDP must have grown at a very rapid rate. C.) Per capita GDP will decrease. D.) This country must have overcome the problem of scarcity.
Generally, specialization leads to
A) constant opportunity costs. B) greater productivity. C) reductions in people's skill levels. D) greater self-reliance.