Assume the demand curve for shampoo is downward sloping. If the price of shampoo falls from $1.50 to $1.25 per dozen,
a. the demand for shampoo will fall.
b. the demand for shampoo will rise.
c. a larger quantity of shampoo will be demanded.
d. a smaller quantity of shampoo will be demanded.
C
You might also like to view...
A speculative attack on an overvalued currency leads to a(n) ________ in international reserves and a(n) ________ in the fundamental value of the currency.
A. decrease; decrease B. increase; decrease C. increase; increase D. decrease; increase
"Price discriminators lose money by being nice to their customers." Is the previous statement correct or incorrect?
What will be an ideal response?
American companies can borrow funds
A) only in U.S. financial markets. B) only in foreign financial markets. C) in both U.S. and foreign financial markets. D) only from the U.S. government.
Suppose that the economy is currently at full employment. All other things being equal, if the government implements expansionary fiscal policy, then the appropriate monetary policy is
A. no change from the current policy. B. reduce the growth of the money supply. C. constant growth of the money supply. D. increase the growth of the money supply.