Answer the following questions true (T) or false (F)
1. The substitution effect explains why there is a direct relationship between the price of a product and the quantity of the product demanded.
2. If consumers believe the price of LCD televisions will decrease in the future, this will cause the demand for LCD televisions to increase now.
3. An increase in population results in an increase in demand.
1. FALSE
2. FALSE
3. TRUE
You might also like to view...
The use of eminent domain to seize private property always results in an increase in cooperative surplus
Indicate whether the statement is true or false
In the table above, what does the private sector surplus equal?
A) $500 billion B) $350 billion C) $150 billion D) $0
When firms analyze the relationship between their level of production and their costs they separate the time period involved into
A) a fixed period and a variable period. B) morning and evening. C) the short run and the long run. D) 6 months or less; 6 months to 1 year; more than 1 year.
Refer to Figure e. Brandon and Allie want to go on a date one summer evening. Allie is a Red Sox fan, while Brandon is a Mets fan. Both teams are playing that evening, but not against each other. Each would rather watch their favorite team, but neither can force the other to watch a particular game, and each is willing to suffer through the other's game if it means time together. If Allie watches the Mets, what is Brandon's best response?
A. Brandon should watch the Red Sox.
B. Brandon should watch the Mets.
C. It does not matter which Brandon watches; he is indifferent between the Red Sox and the Mets.
D. Brandon should not consider Allie's choice when making her decision.