The law of demand says that in most cases, the lower the price, the lower the quantity demanded.
Answer the following statement true (T) or false (F)
False
The law of demand says that a lower price tends to increase the quantity demanded, all other things equal.
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There is only one supermarket in Beverly Hills, California because
A) supermarkets can't compete effectively against residents in buying land. B) supermarket owners are paying attention to sunk costs in their location decisions. C) the demand for food is highly elastic in wealthy neighborhoods. D) the demand for food is highly inelastic in wealthy neighborhoods. E) wealthy people rarely do their own grocery shopping.
In the long run, a single-price monopolist will
A) make zero economic profit. B) be able to continue to make an economic profit as long as there is a barrier to entry. C) end up being regulated by the government because it is making short-run economic profits. D) Both answers A and C are correct.
During recessions, the value of collateral decreases and corporate profits decrease, so firms do not have cash to finance new investment projects. Therefore, credit rationing depends on the state of the economy. This situation is known as the
A) risk acceptance cost. B) lender's dilemma. C) default premium. D) financial accelerator.
Welfare mothers' desires for their children are quite high, but their expectations are much lower
Indicate whether the statement is true or false