Decrease in stock market wealth will ________ the expenditure curve:
A) decrease.
B) increase.
C) not change.
D) none of the above.
A
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The "natural" rate of unemployment is the unemployment rate toward which the economy gravitates in the
a. short run, and the natural rate is constant over time. b. long run, and the natural rate is constant over time. c. short run, and the natural rate changes over time. d. long run, and the natural rate changes over time.
Answer the following statements true (T) or false (F)
1. If the percentage change in quantity demanded is less than the percentage change in price, then demand is said to be elastic. 2. A good with a price-elasticity coefficient of 0.75 has a demand that is price-inelastic. 3. If the quantity demanded for good A increases from 40 to 60 when price decreases from $9 to $7, price elasticity of demand in this price range is 1.6. 4. In the price range where demand is elastic, if the seller of the good raises its price, then total revenues will increase. 5. If the price-elasticity coefficient for a product is 0.68 and the seller wants to raise revenues by changing its price, then the seller should cut the price of the product.