According to the traditional economic model, which of the following would alter a state of consumer equilibrium if all other factors remain the same?
a. a decrease in the price of a good
b. an increase in the quantity supplied of a good
c. a decrease in the number of substitutes
d. an increase in the number of complements
a. a decrease in the price of a good
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Consider a discount retailer such as Costco which uses a two-part tariff pricing strategy. The Costco membership fee
A) is used by Costco to cover its fixed costs of production. B) buys the consumer the right to make future purchases at Costco. C) is a resalable asset to the consumer. D) is a resalable asset to the producer.
The price elasticity of demand is equal to the slope of the demand curve
a. True b. False
Which of the following is not included in Nation A's financial account?
a. Foreign deposits of funds in savings accounts in Nation A. b. Purchases and sales of fishing and mineral rights. c. Foreign purchases of Nation A's Treasury bills. d. All the above.
In which of the following cases does the aggregate-demand curve shift to the right?
a. The price level rises, causing the interest rate to fall. b. The price level falls, causing the interest rate to fall. c. The money supply increases, causing the interest rate to fall. d. The money supply decreases, causing the interest rate to fall.