With a given level of money income, when the price of a product that a consumer buys declines, the purchasing power of your money income
A. is unchanged.
B. decreases.
C. increases.
D. can increase or decreases depending on the goods being consumed.
Answer: C
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If a nation is going to achieve and sustain a high rate of economic growth, it must
What will be an ideal response?
A capital good is
A. a good that should increase in value over time. B. an intermediate product and therefore not part of GDP. C. a good that lasts more than three years. D. a good that is used to make other goods and services.
A stock market boom increases wealth and thus consumption.
Answer the following statement true (T) or false (F)
When the price of pistachio nuts is $7.50 per lb. the quantity demanded is 48 lbs. When the price of pistachio nuts is $9.00 per lb. the quantity demanded is 40 lbs
When the midpoint formula is used to measure the price elasticity of demand we can say that the demand for pistachio nuts is A) completely inelastic. B) relatively, but not perfectly, elastic. C) unit elastic. D) relatively, but not perfectly, inelastic.