The quantity effect of a price decrease by a monopolist is based on:
A) the Law of Supply.
B) the Law of Demand.
C) the Law of Increasing Returns.
D) the Law of Diminishing Returns.
B
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Consider the currency market for British pounds and U.S. dollars. A decrease in the supply of British pounds results in a(n) ________ of the pound and a(n) ________ of the dollar.
A. appreciation; depreciation B. appreciation; appreciation C. depreciation; depreciation D. depreciation; appreciation
Pick the scarce good below with the completely inelastic demand curve
A) Clean air B) Clean water C) Tropical rain forests D) Well-maintained national-forest fisheries E) Trick question: none of the above goods have a completely inelastic demand curve.
If real estate prices are expected to drop, all else equal, the demand for bonds ________ and the interest rate_______
A) increases; rises B) increases; falls C) decreases; rises D) decreases; falls
Human capital is
a. an important determinant of wages, but it does not affect the production of goods and services. b. an important determinant of wages, and it affects the production of goods and services. c. a specific type of physical capital made by humans rather than machines. d. very different from physical capital in that physical capital represents an investment, while human capital does not represent an investment.