If the price of music downloads was to decrease, then
A) the demand for MP3 players would decrease.
B) the demand for MP3 players would increase.
C) the supply of MP3 players would increase.
D) the quantity of MP3 players demanded would decrease.
Answer: B
You might also like to view...
Every economic decision involves a trade-off because of
A. theory. B. opportunism. C. consumption. D. scarcity. E. efficiency.
Refer to the scenario above. Phillip should play this game using ________
A) backward induction B) forward induction C) mixed strategies D) his dominated strategy
A consumer consumes two normal goods, coffee and chocolate. The price of coffee rises. The income effect, by itself, suggests that the consumer will consume
a. more coffee and more chocolate. b. less coffee and less chocolate. c. more coffee and less chocolate. d. less coffee and more chocolate.
When a shortage exists in a market
A) the market clearing price is above equilibrium and market forces will cause the price to fall. B) the quantity demanded is less than the quantity supplied at the existing price. C) the current price is below the market clearing price and the price will rise. D) the quantity supplied is greater than the quantity demanded at the current price.