As the price level increases, the amount of goods and services that consumers, businesses, and governments desire to purchase will change. This is depicted by:
a. a leftward movement of the aggregate demand curve
b. a rightward movement of the aggregate demand curve.
c. an upward movement along the aggregate demand curve.
d. a downward movement along the aggregate demand curve.
e. an increase in the slope of the aggregate demand curve.
c
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Refer to Figure 3-6. The figure above represents the market for canvas tote bags. Assume that the market price is $35. Which of the following statements is true?
A) There is a surplus that will cause the price to decrease; quantity demanded will then increase and quantity supplied will decrease until the price equals $25. B) There is a surplus that will cause the price to increase; quantity demanded will then decrease and quantity supplied will increase until the price equals $25. C) There is a surplus that will cause the price to decrease; quantity supplied will then increase and quantity demanded will decrease until the price equals $25. D) There will be a surplus that will cause the price to decrease; demand will then increase and supply will decrease until the price equals $25.
Which of the following antitrust laws forbade firms to engage in price discrimination if the effect would lessen competition or create a monopoly?
A) the Cellar-Kefauver Act B) the Clayton Act C) the Robinson-Patman Act D) the Sherman Act