Assume 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 decrease.
B. a larger quantity of C will be demanded.
C. the demand for C will increase.
D. a smaller quantity of C will be demanded.
Answer: B
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When a government prints money to finance its expenditures, it is likely to cause
A) unemployment. B) inflation. C) deflation. D) reductions in the use of barter.
Motivations for behavioral economics include:
A. people sometimes make choices that are inconsistent with standard economic theory. B. all choices made by individuals are consistent with standard economic theory. C. standard economic theory can lead to unreasonable conclusions about consumer welfare. D. people sometimes make choices that are inconsistent with standard economic theory and standard economic theory can lead to unreasonable conclusions about consumer welfare.
Which of the following is an example of a disincentive?
A. Law enforcement creates a "Mug Shots" section online in order to discourage potential law breakers. B. You offer workers a bonus if they sell 100 widgets per month. C. A local gym offers a weight loss competition and the winner earns a free trip to Bermuda. D. Your professor offers to edit your paper before it's graded if you turn it in early.
Barriers to entry are forces that:
A. promote a more efficient allocation of resources across the economy. B. limit consumers from purchasing new products. C. limit the government from intervening in markets. D. limit new firms from joining an industry.