In deriving the demand schedule for a good, economists assume that
A. reported income changes at each point on the demand schedule.
B. consumers have equal incomes to allocate among goods.
C. all other influences on demand except the product price are held constant.
D. a consumer will allocate all of her income to one good.
Answer: C
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Which of the following would cause the dollar to depreciate?
A) an increase in the demand for dollars B) a decrease in the demand for imports from foreign countries C) a decrease in the supply of dollars D) a decrease in the demand for dollars
How do households make saving decisions?
What will be an ideal response?
The simple accelerator theory suggests that investment will be rising when
A) output is rising. B) the growth of output is rising. C) output is high. D) the growth of output is high.
Nonrivalry in consumption and the inability to exclude nonpaying consumers from using the goods are characteristics of what kinds of goods?
a. durable b. nondurable c. public d. private