When the term "price" is used in the law of demand, price refers to
A) the dollar price of the good.
B) the price of the good relative to the price of another good.
C) the absolute price of the good.
D) the nominal price of the good relative to its nominal price in the previous year.
B
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Independent, non-monopoly firms have an incentive advantage over monopolies in new-product innovation
Indicate whether the statement is true or false
Luis wonders why commercials appear more frequently at the end of a TV movie than at the beginning. Carol says that this pattern can be explained by the
a. share of the viewer's budget spent on TV watching b. length of the adjustment period c. cost of supplying additional minutes of the movie d. high elasticity of demand for watching the end of a TV movie e. availability of substitutes
Consumer equilibrium requires that the marginal utility per dollar spent be unequal for all goods
a. True b. False Indicate whether the statement is true or false
How does Keynesian economic theory recommend that fiscal policy be conducted?