To derive the law of demand, we assume that
A. marginal utility is constant.
B. prices are constant.
C. tastes are constant.
D. real prices are constant.
Answer: C
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The figure above shows the demand for and supply of rental housing in Smallton. If a rent ceiling is set at $800, what is the rent?
A) $800 B) $600 C) $400 D) None of the above answers is correct.
A sales tax is a tax on the:
A. earnings of individuals and corporations. B. income earned by buying investments and selling them at a higher price. C. wages paid to an employee. D. value of a good or service being purchased.
Suppose the price of gold is initially $300 per ounce in New York and 450 Canadian dollars per ounce in Toronto, Canada. If the law of one price holds for gold, the nominal exchange rate is ________ Canadian dollars per U.S. dollar. If Canada experiences inflation, such that the price of gold rises to 510 Canadian dollars per ounce, but the U.S. does not experience any inflation, the nominal exchange rate would be ________ Canadian dollars per U.S. dollar.
A. 0.67; 0.59 B. 1.70; 1.50 C. 1.50; 1.70 D. 0.59; 0.67
Changes in short-run total costs result from changes in
A. The price elasticity of demand. B. Profit. C. Variable costs. D. Fixed costs.