The law of demand implies, holding everything else constant, that as the price of gelato
A) increases, the demand for gelato will increase.
B) increases, the quantity of gelato demanded will increase.
C) decreases, the quantity of gelato demanded will increase.
D) decreases, the demand for gelato will increase.
Answer: C
You might also like to view...
Which theory of economic growth concludes that in the long run real GDP per person will be at its subsistence level?
A) the classical theory B) the neoclassical theory C) the new growth theory D) all of the theories
No particular stock is a better buy than any other stock if
a. stock prices are driven by investors' "animal spirits.". b. the random-walk theory of stock prices is incorrect. c. the efficient markets hypothesis is correct. d. actively managed mutual funds always outperform index funds.
Figure 5-18
In Figure 5-18, point D for the consumer
a.
will be chosen because total utility is larger there than at point C.
b.
would not be chosen because it is less desirable than point C.
c.
is unattainable, given the consumer's budget.
d.
has total utility equal to point C.
For a perfectly competitive firm, profit maximization occurs when
A. marginal revenue equals marginal cost. B. marginal revenue equals average total cost. C. marginal cost is equal to average total cost. D. average total cost is at its minimum.