The demand curve slopes downward because of:
a. diminishing marginal utility and consumer equilibrium.
b. the fact that consumers cannot decide how much they want to pay for goods and services.
c. the fact that suppliers cannot decide how much to charge for the goods and services they supply.
d. the fact that consumer tastes and preferences change rapidly.
e. the fact that consumers are fickle, which makes pricing a good or service very difficult.
a
You might also like to view...
Suppose the government has declared beer to be an illegal substance and has imposed equal penalties on any person caught buying a beer and on any person caught selling a beer
Using the above figure, in which CBL is the cost of breaking the law, what is the equilibrium price and quantity with this new law in effect? A) $5 per quart and 300 quarts of beer B) $3 per quart and 500 quarts of beer C) $3 per quart and 100 quarts of beer D) $1 per quart and 300 quarts of beer
If we knew that the price of goods rose, on average, by 5 percent last year and by 4 percent this year, we would know
a. nothing about the rate of inflation b. that the inflation rate is rising c. that the inflation rate is falling d. that we are in a stagflation e. that we are in a recession
Producer surplus:
A. is the difference between the maximum prices consumers are willing to pay for a product and the lower equilibrium price. B. rises as equilibrium price falls. C. is the difference between the minimum prices producers are willing to accept for a product and the higher equilibrium price. D. is the difference between the maximum prices consumers are willing to pay for a product and the minimum prices producers are willing to accept.
In the long run, an increase in government purchases of military equipment would cause output to ________ and the aggregate price level to ________.
A. fall; stay constant B. fall; fall C. stay constant; fall D. stay constant; rise