Refer to the accompanying figure. If the price of a latte increases from $2.00 to $2.50:
A. total expenditure would decrease.
B. the change in total expenditure, if any, would depend on the supply curve.
C. total expenditure would increase.
D. total expenditure would stay the same.
Answer: A
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The belief that the velocity of money is not constant but highly predictable is associated with the:
a. Keynesian school. b. monetarist school. c. rational expectations school. d. supply-side school. e. classical school.
An increase in the U.S. cattle herd in Texas because of favorable market conditions will
A. shift the supply curve of US corn to the right. B. shift the supply curve of US corn to the left. C. shift the demand curve for US corn to the right. D. shift the demand curve for US corn to the left.
Natural resources are examples such as __________ ?
a. Humans, buildings, cars; houses b. None of the mention resources c. Trees, body of waters; minerals d. goods, services, knowledge; cars
Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher