A demand curve for a normal good
A) slopes upward and to the right.
B) is constructed based on the assumption that income is rising.
C) is constructed based on the assumption that an inverse relationship exists between price and income.
D) shows the inverse relationship between price and quantity demanded.
D
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In a closed economy:
A) consumption is equal to zero. B) investment is equal to zero. C) government spending is equal to zero. D) net exports is equal to zero. In a closed economy, without the government, the consumption expenditure equals $5,000 and the investment expenditure equals $2,000.
Which of the following is not an example of a transfer payment?
A) health insurance payments to an army private B) social security payments to disabled persons C) unemployment insurance payments D) social security payments to retirees
A competitive market economy is unlikely to provide an efficient quantity of some public goods because:
a. only the government has the vast resources necessary to produce public goods. b. the nature of public goods makes it difficult for producers to withhold them from nonpaying consumers. c. the technology involved in the production of public goods makes it difficult for private firms to produce them even though, once produced, they could be marketed efficiently. d. private production of public goods generally results in a large amount of profit, which is difficult for a firm to effectively pay out to shareholders.
The own price elasticity of demand for apples is ?1.5. If the price of apples falls by 6 percent, what will happen to the quantity of apples demanded?
A. It will fall 4 percent. B. It will increase 4 percent. C. It will increase 9 percent. D. It will fall 6 percent.