Mark complains: "I can't believe they raised the price of comic books, and because of this, I'm going to reduce my demand for comic books." Is Mark stating the concept of demand correctly?
Mark has confused the concept of demand with a change in quantity demanded. In response to the price increase, he will reduce his quantity demanded. Factors other than price will affect Mark's demand, such as his income, his tastes, etc. If these change, his demand will change.
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In economics, money is defined as
a. the total value of one's assets in current prices. b. the total value of one's assets minus the total value of one's debts, in current prices. c. the total amount of salary, interest, and rental income earned during a year. d. any asset people generally accept in exchange for goods and services.
A discouraged worker is someone who: a. has a job, but wants to get a different one
b. is unemployed and looking for work. c. quits a job and is unable to collect unemployment compensation. d. gives up looking for work, and is no longer counted as unemployed.
Which of the following is part of the economic way of thinking?
a. Opportunity costs will always be incurred when scarce resources are used to produce a good. b. When the cost of an option increases, individuals will be less likely to choose it. c. In addition to their immediate direct effects, economic actions often generate secondary effects that are observable only after the passage of time. d. All of the above are part of the economic way of thinking.
Refer to Table 4.1. Mike's preferences are consistent with the More-Is-Better Principle because:
A. the two goods are perfect substitutes.
B. there are no empty cells.
C. in each column, the choices at the top are ranked lower than the choices at the bottom.