Suppose that in 2008, Ford sold 500,000 Mustangs at an average price of $18,800 per car; in 2009, 600,000 Mustangs were sold at an average price of $22,500 per car. These statements:
A. suggest that the demand for Mustangs decreased between 2008 and 2009.
B. suggest that the demand for Mustangs increased between 2008 and 2009.
C. constitute an exception to the law of demand in that they suggest an upsloping demand curve.
D. suggest that the supply of Mustangs must have increased between 2008 and 2009.
Answer: B
You might also like to view...
Suppose you own some German government bonds that pay you interest every year. This interest is entered into which of the balance of payments accounts?
A) trade account B) interest account C) current account D) capital and financial account E) official settlements account
On September 3, 2003, Universal Music Group announced plans to reduce the wholesale price of music CDs it distributes by an average of 25-30 percent. All else constant (i.e
, ignoring the effects of file-sharing programs), how would this change affect the retail market for new music CDs? A) Demand for CDs would increase, causing equilibrium price and quantity to increase. B) The supply of CDs would increase, causing equilibrium price to decrease and equilibrium quantity to increase. C) Demand for CDs would decrease, causing equilibrium price and quantity to decrease. D) The supply of CDs would decrease, causing equilibrium price to increase and equilibrium quantity to decrease.
What are some of the possible ways in which we could reduce the natural rate of unemployment?
Unexpected increases in inventories usually precede
A) increases in inflation B) increases in imports C) stagflation D) decreases in production E) decreases in unemployment