Consider the market for ride-on lawn mowers and the recent increases in the price of oil. The recent increase in the price of oil makes it more expensive to manufacture ride-on lawn mowers. An increase in the price of oil also makes it more expensive to run a ride-on mower. What factors of demand and/or supply are affected by the changing price of oil?
A. Price of related good, expectations of future
B. Price of related good, price of input
C. Price of input, income
D. Price of input, number of buyers
B. Price of related good, price of input
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The downward sloping aggregate demand curve can be explained in part through the:
A. wealth effect. B. negative relationship between the price level and net exports. C. negative relationship between the price level and investment spending. D. All of these are true.
Firms who effectively differentiate their product from their competitors' products do so by having:
A. perceived, but not real, differences in product design. B. real, not just perceived, differences in product design. C. real or perceived differences in product design. D. None of these statements is true.
The law passed by Congress in 1914 that was designed to sharpen or define further the vagueness of the Sherman Act is called
A. the Robinson-Patman Act. B. the Wheeler-Lea Act. C. the Federal Trade Commission Act. D. the Clayton Act.
Since 1950, national wealth in the U.S. has
A) Stayed about the same B) Decreased for median households C) Has increased by a huge amount D) Has decreased by a small amount