Which of the following changes will cause a downward movement along the money demand curve?
a. An increase in the interest rate
b. A decrease in the interest rate
c. A decrease in real GDP
d. An increase in real GDP
e. An increase in the price level
b
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If a non-discriminating monopolist decides to lower its price to sell one more unit of its product, then
a. total revenue rises by an amount equal to the price b. some revenue is lost to the extent that units previously sold at a higher price now sell for a lower price; however, the additional unit sold brings in new revenue c. marginal revenue increases when total revenue increases d. the net effect on total revenue is typically zero since the price must fall e. the net effect on total revenue is typically negative since the price must fall
If the economy is in recession and the number of used baby clothing stores increases, then used baby clothes
a. are a necessity b. are an inferior good c. are a normal good d. are a luxury e. have price-elastic demand