If real disposable income increases, the average propensity to save will
A. decrease.
B. initially increase, and then decrease.
C. increase.
D. remain constant.
Answer: C
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Suppose the equilibrium rent in Boston is $1,500. A rent ceiling of $1,600 per month leads to
A) a surplus of apartments in Boston. B) a shortage of apartments in Boston. C) no change in the Boston apartment market. D) fair prices in the Boston apartment market. E) compared to the situation at the equilibrium rent, a decrease in the quantity of apartments demanded and an increase in the quantity of apartments supplied.
Which of the following is an example of pure bundling?
A) a pair of pants B) a pizza and beer lunch combo C) an automobile D) All of the above.
The demand curve of a commodity slopes downward because of:
a. the insatiable nature of human wants. b. the presence of double coincidence of wants. c. the law of demand. d. the scarcity of goods and services in an economy. e. the law of diminishing marginal utility.
If many more home sellers and builders have become more eager to sell their homes, we would expect to see:
a. an increase in equilibrium price and an increase in equilibrium quantity of homes sold. b. an increase in equilibrium price and a decrease in equilibrium quantity of homes sold. c. a decrease in equilibrium price and an increase in equilibrium quantity of homes sold. d. a decrease in equilibrium price and a decrease in equilibrium quantity of homes sold.