When the price of apples goes up:
A. the demand for apples will decrease, ceteris paribus.
B. the demand for apples will increase, ceteris paribus.
C. the quantity of apples demanded will decrease, ceteris paribus.
D. the quantity of apples demanded will increase, ceteris paribus.
Answer: C
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A depository institution is a firm that takes deposits from ________ and makes loans to ________
A) households and firms; other households and firms B) firms only; households only C) households only; firms only D) firms only; other firms only
The principle that consumers and firms optimize
A) is not helpful because some economic agents may behave irrationally. B) is helpful because it allows us to analyze how economic agents respond to changes in their environment. C) only applies to perfectly competitive markets. D) is helpful because it determines the available technology.