A decrease in price of a certain good most likely will lead to
A. an increase in quantity demanded and an increase in the demand for that good.
B. an increase in quantity demanded but no change in the demand for that good.
C. an increase in demand but no change in quantity demanded.
D. no change in demand and no change in quantity demanded.
Answer: B
You might also like to view...
Suppose that the production function for the economy is Y = AK0.5L0.5. If the capital stock = 40,000, the quantity of labor = 10,000, and the efficiency index = 3, the equilibrium real rental price of capital is
A) $0.33. B) $0.75. C) $1.00. D) $2.22.
The income-expenditure identity is best paraphrased as
A) all spending generates income. B) all profits are used for investment spending. C) on average, consumers cannot save. D) on average, government can spend no more than what it collects in income taxes.