"A reduction in gasoline prices caused the demand for gasoline to increase. The lower gas prices also led to an increase in demand for large cars, causing their prices to rise." These statements
What will be an ideal response?
contain one error; the lower gasoline prices would cause an increase in the quantity demanded of gasoline, not an increase in demand.
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What factors shift the demand for labor curve? Briefly describe the effect of each
What will be an ideal response?
Malaysia differed from other East Asian countries after the crisis in its adoption of
a. government-owned banks b. investment insurance c. prison sentences for currency traders d. restrictions on capital movements e. all of the above
An increase in unplanned inventory investment for the entire economy equals the excess of
A) output over aggregate supply. B) output over aggregate demand. C) aggregate supply over output. D) aggregate demand over output.
Which one of the following is not a characteristic of a perfectly competitive market? a. Firms advertise in order to distinguish their products and increase market share. b. Firms earn zero economic profit in the long run
c. Competing products are virtually identical. d. Firms are price takers.