The effect of an increase in the price of gasoline on the demand for sport utility vehicles would be shown by a:
A. rightward shift of the demand curve for sport utility vehicles.
B. leftward shift of the demand curve for sport utility vehicles.
C. movement up and to the left along the demand curve for sport utility vehicles.
D. movement down and to the right along the demand curve for sport utility vehicles.
B. leftward shift of the demand curve for sport utility vehicles.
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Wheat is used to produce cereal. When the price of wheat falls, the
A) demand for wheat increases. B) supply of wheat decreases. C) supply of cereal increases. D) demand for cereal increases. E) demand for cereal decreases.
Carlos Silva, a Colombian singer, goes on tour to the United States for one month, following high American demand for his live shows. Assuming that all the show's expenses are paid by the U.S. promoters, other things equal, the U.S. tour will bring about:
a. a decreased supply of Colombian pesos in the foreign exchange market. b. an increased supply of American dollars in the foreign exchange market. c. an increased supply of Colombian pesos in the foreign exchange market. d. a decreased demand for Colombian pesos in the foreign exchange market. e. an increased demand for American dollars in the foreign exchange market.
The substitution effect of a decrease in the price of an inferior good encourages the consumer to purchase more of the good while the income effect encourages the consumer to purchase less of it
a. True b. False
Nominal GDP uses constant base-year prices to place a value on the economy's production of goods and services, while real GDP uses current prices to place a value on the economy's production of goods and services
a. True b. False Indicate whether the statement is true or false