Which of the following would unambiguously increase consumption spending?
a. an increase in real disposable income coupled with a decrease in real wealth
b. an increase in real wealth coupled with more pessimistic expectations regarding future income
c. a decrease in real disposable income coupled with a decrease in the interest rate
d. a decrease in the interest rate coupled with an increase in real wealth
e. increased pessimism regarding future income coupled with an increase in the interest rate
D
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Use the following graph of the demand for noodles to answer the question below.
Refer to the three demand curves for noodles. Which of the following would shift the demand for noodles from D1 to D2?
A. an increase in the number of buyers of noodles B. People hear that eating noodles can have negative health effects. C. a decrease in the price of noodles D. a decrease in the number of buyers of noodles
If an increase in income leads to a decrease in the demand for popcorn, then popcorn is
A) a necessity. B) a normal good. C) an inferior good. D) a neutral good.
Refer to Figure 13-17. What is the amount of excess capacity?
A) Qj - Qh units B) Qj - Qf units C) Qh - Qg units D) Qh - Qf units
When buying a car from a commission salesman you improve your bargaining position by
a. shopping for last year's model when the new model year cars are arriving b. shopping when the showroom is full of customers c. shopping when the car lot has few cars left unsold d. shopping toward the beginning of the month