If price rises, what happens to quantity demanded for a product?
a. It increases.
b. It decreases.
c. It does not change.
d. Uncertain-economic theory has no answer to this question.
b
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The relative poverty line defines poverty:
A. in relation to the income of the rest of the population. B. based on the expenditure on food relative to total income. C. as the price of basic food, clothing, shelter and utilities, and adjusts for geographic differences in the cost of living. D. None of these is true.
Many economists think that, in the long run, the economy generally tends to move toward: a. an accelerating inflation rate
b. a stable price level. c. the natural or full-employment rate of inflation. d. the natural or full-employment rate of unemployment.
How did families manage to keep up their standard of living in the 1970s and 1980s in the face of falling real wages?
A. They went on welfare and food stamps. B. They tightened their belts. C. They sent their stay-at-home mom to work. D. They went into debt.
Name the three types of unemployment.
What will be an ideal response?