Law of demand
What will be an ideal response?
-There is an inverse (negative) relationship between the price of a good and the quantity that buyers are willing to purchase
-Results in a downward sloping _____curve.
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Price wars are ________ likely to occur when the industry is ________
A) more; a monopoly. B) more; an oligopoly. C) more; perfect competition. D) equally; monopoly, oligopoly, and perfect competition.
If an economy's aggregate expenditure line crosses the 45-degree line at a level below potential GDP, then there exists an inflationary gap
a. True b. False Indicate whether the statement is true or false
Which of the following statements is false?
a. If total utility rises, so must marginal utility. b. If marginal utility falls, so must total utility. c. If marginal utility rises, so must total utility. d. If total utility falls, marginal utility is negative.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.