According to the law of demand, when price increases the quantity demanded of a good
decreases.
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A decrease in interest rates can ________ the demand for stocks as stocks become relatively ________ attractive investments as compared to bonds
A) decrease; less B) increase; more C) decrease; more D) increase; similar E) increase; less
If the United Auto Workers union can obtain a substantial wage increase for auto workers, there will be a(n):
a. decrease in the supply of automobiles, which is a shift to the right of the supply curve. b. decrease in the supply of automobiles, which is a shift to the left of the supply curve. c. increase in the supply of automobiles, which is a shift to the right of the supply curve. d. increase in the supply of automobiles, which is a shift to the left of the supply curve.
Corrective taxes
a. encourage consumers to avoid sales taxes by shopping online. b. are frequently used to discourage imports. c. are less efficient than direct regulation. d. give factory owners an economic incentive to reduce pollution.
Briefly explain why the law of one price does not hold closely for most products that are traded internationally.
What will be an ideal response?