If coffee is a substitute for tea, and the price of coffee rises, what will happen?
A. Demand for tea will decrease.
B. Demand for tea will increase.
C. The quantity demanded of coffee will rise.
D. The quantity demanded of tea will decrease.
B. Demand for tea will increase.
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Compared to a country with an MPC of 0.9, a country with an MPC of 0.5 would have to change government expenditures by ________ as much to have the same impact on real GDP.
A. twice B. three times C. four times D. five times
The perfectly competitive model assumes that: a. individual sellers can influence the market price
b. sellers can increase their total revenue by raising prices. c. firms can enter and exit the industry with relative ease. d. firms compete by varying a product's quality rather than a product's price.
Offering goods that are similar to competitors' products but more attractive in some ways is called:
A. product distinction. B. price-point pinning. C. product differentiation. D. deceptive advertising.
"Demand" is a statement of actual purchases.
Answer the following statement true (T) or false (F)