Suppose that consumers expect the price of a product to decrease in the future. The result is that
A) the current demand for the product increases. B) the current demand for the product decreases.
C) the current supply of the product decreases. D) the current supply of the product increases.
B
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In the short run, perfectly competitive firms
a. always earn an economic profit b. never earn an economic profit c. always invest more in order to earn more d. never suffer an economic loss e. can earn an economic profit
The difference between the maximum price a consumer is willing to pay for a product and the actual price the consumer pays is called:
A. Utility B. Consumer Surplus C. Consumer Demand D. Market failure
Restricting imports
A. can protect United States final goods and services in the protected industry and increase economic welfare of the country as a whole. B. can protect United States jobs in the protected industry but will also lead to reductions in U.S. output and income. C. can protect United States jobs in the protected industry, which increases economic welfare of the country as a whole. D. can protect United States final goods and services in the protected industry and makes consumers better off.
One way inflation reduces aggregate demand is by:
A. increasing wealth. B. increasing nominal GDP. C. increasing velocity. D. reducing real balances.