The demand curve is downward sloping because
A) the price must rise to induce firms to increase quantity supplied.
B) a reduction in the price of a good causes individuals to increase their purchase of that good.
C) an increase in the price will cause a leftward shift in the demand curve.
D) all of the above.
Answer: B
You might also like to view...
In the above figure, the economy is at point A. Then the price level rises to 110 while the money wage rate remains constant. Firms will be willing to supply output equal to
A) less than $16.0 trillion. B) $16.0 trillion. C) more than $16.0 trillion. D) Without more information, it is impossible to determine which of the above answers is correct.
Autarky is a situation in which a country
A) only imports products. B) only exports products. C) does not trade with other countries. D) has no absolute advantage in any production.
In the aggregate demand-aggregate supply model, the short-run effects of an unanticipated increase in the money supply will be
a. lower real interest rates and an increase in aggregate demand. b. higher real interest rates and an increase in aggregate demand. c. lower real interest rates and a reduction in aggregate demand. d. higher real interest rates and a reduction in aggregate demand.
Whenever the dependent variable takes on just a few values it is close to a normal distribution.
Answer the following statement true (T) or false (F)