Which of the following is consistent with the law of demand?
A. An increase in the price of hamburgers causes a decrease in the quantity of hamburgers demanded.
B. A decrease in the price of tacos causes sellers to want to sell less.
C. A decrease in the price of egg rolls causes a decrease in the quantity of egg rolls demanded.
D. An increase in the people's craving for pizza causes buyers to buy more pizza.
Answer: A
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Consumption goods and services include
A) washing machines and tickets to football games. B) new homes and existing homes (as long as improvements have been made to the existing home). C) tickets to concerts and medical care provided to veterans by the government. D) new and used textbooks as long as they are sold via stores or online. E) vacation time accumulated by workers.
The "interest rate effect" can be described as an increase in the price level that raises the interest rate and chokes off
A) investment and consumption spending. B) government spending. C) government spending and unplanned investment. D) net exports.