You love bananas. Due to a bad crop harvest, supply of bananas dropped in half. The price for bananas is expected to double in the near future. As a result,
a. your demand for banana will increase when the price doubles
b. your demand for banana increases today.
c. your demand for peanut butter decreases today
d. it does not affect your demand as you love bananas
c
You might also like to view...
When the price of gasoline is $2.20 per gallon, 11 million gallons are demanded, and when the price of gasoline goes up to $2.60 per gallon, 10 million gallons are demanded. The gasoline in this range has a(n)
A) elastic demand. B) inelastic demand. C) unit elastic demand. D) perfectly elastic demand.
Which of the following correctly describes the effects of a decrease in net taxes?
What will be an ideal response?
Refer to the accompanying figure. 
Based on the Keynesian cross diagram, at short-run equilibrium output,
A. firms will be producing more than they can sell. B. there is a recessionary gap. C. there is an expansionary gap. D. output equals potential output.
Answer the following questions true (T) or false (F)
1. An increase in exports decreases aggregate demand. 2. An increase in disposable income will shift the aggregate demand curve to the right. 3. An increase in the price level causes a movement down the aggregate demand curve.