If virtual reality headsets are considered substitutes for game consoles, then a decline in the price of game consoles would, all else equal
A) increase the demand for virtual reality headsets.
B) decrease the demand for virtual reality headsets.
C) increase the quantity of virtual reality headsets demanded.
D) decrease the quantity of virtual reality headsets demanded.
Answer: B
You might also like to view...
Define "autonomous consumption spending."
What will be an ideal response?
Stocks and bonds are
a. financial assets; therefore, they are considered to be money b. highly-liquid financial assets; therefore, they are considered to be money c. not highly-liquid financial assets; therefore, they are not considered to be money d. widely accepted means of payment; therefore, they are considered to be money e. not financial assets; therefore, they are not considered to be money
?
Macro AD-AS Model
In Exhibit 14A-4, the self-correction argument is that in the long run, competition:
A. from unemployed workers causes an increase in nominal wages and a leftward shift in SRAS. B. from unemployed workers causes a rightward shift in SRAS. C. among firms for workers increases nominal wages and this causes a leftward shift in SRAS. D. among consumers causes an increase in the CPI and a rightward shift in SRAS.
The production possibilities curve illustrates which two of the following essential principles?
A. Economic growth and market failure. B. Factors of production and price signals. C. Market mechanisms and laissez faire. D. Scarce resources and opportunity cost.