If consumers find that there are substantial transaction costs to purchasing a product, then

A. equilibrium price and quantity both fall.
B. overall consumer demand is the same at each price.
C. overall consumer demand is greater at each price.
D. overall consumer demand is less at each price.


Answer: D

Economics

You might also like to view...

The U.S. bond rating was devalued from AAA to AA+ in 2011 due to the rise in government debt

a. True b. False Indicate whether the statement is true or false

Economics

The decision about the forms in which to hold one's wealth is called the ________ decision.

A. life-cycle B. Fisher effect C. Taylor D. portfolio allocation

Economics

________ originally proposed the use of government spending to stimulate the economy in the 1930s during the Great Depression.

A. Stanley Kuznets B. John Maynard Keynes C. Albert Einstein D. Franklin Delano Roosevelt

Economics

Scarcity arises because

A. shortages always occur. B. natural resources are abundant. C. some people do not behave in a rational manner. D. resources are limited and are inadequate to meet all human wants.

Economics