Which of the following is true?
A) If the price of a substitute rises, the demand curve shifts leftward.
B) An increase in the cost of producing a good shifts the demand curve leftward.
C) An increase in population shifts the demand curve leftward.
D) If people expect the price of a good will rise in the future, the demand curve shifts leftward.
E) For an inferior good, when income increases, the demand curve shifts leftward.
E
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"Although the price levels appear to display short-run stickiness in many countries, a change in the money supply creates immediate demand and cost pressures that eventually lead to future increase in the price level." Discuss
What will be an ideal response?
Suppose that in the economy of Springfield, USA, Homer, who has an income of $50,000, pays $10,000 in taxes. Edna, who has an income of $35,000, pays $9,000 in taxes. Based on this information, we could say that Springfield's tax system is
A) proportional. B) progressive. C) regressive. D) flat.
Which of the following is an example of an externality?
a. cigarette smoke that permeates an entire restaurant b. a flu shot that prevents a student from transmitting the virus c. a beautiful flower garden outside the county courthouse d. All of the above are examples of externalities.
If Sanjaya can shuck more oysters in one hour than Tatiana, then Sanjaya has a comparative advantage in shucking oysters
Indicate whether the statement is true or false