If a monopolist lowers its price
A. the quantity demanded decreases.
B. the quantity demanded increases.
C. the quantity demanded remains the same.
D. the quantity demanded becomes zero.
Answer: B
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The three business cycle models differ mostly in their treatment of ________
A) aggregate demand B) short-run aggregate supply C) long-run aggregate supply D) productivity shocks
If the Fed wants to decrease the money supply, it can __________ the required reserve ratio, conduct an open market __________, or __________ the discount rate
A) raise; purchase; lower B) lower; purchase; lower C) raise; sale; raise D) lower; sale; lower E) none of the above
In 2009, output was beneath potential. At the same time, the budget deficit hit a record high of over $1 trillion. If President Obama were to have pursued budget cuts, given the state of the economy, these spending cuts would have:
A. been procyclical. B. increased interest rates. C. crowded out investment. D. been countercyclical.
An individual demand schedule
What will be an ideal response?