What does the slope of the credit demand curve imply? When do movements along a credit demand curve occur?
What will be an ideal response?
The slope of the credit demand curve is negative and it implies an inverse relationship between the real rate of interest and the quantity of credit demanded. This means that as the real interest rate increases, the quantity of credit demanded decreases.
Movements along a credit demand curve occur when, everything else remaining unchanged, there is a change in the real interest rate.
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a. True b. False Indicate whether the statement is true or false
The monopolist's marginal revenue is less than price since
A) additional units can only be sold if the price is lowered on all units sold. B) the demand function is horizontal. C) average revenue is also less than price. D) average total cost is declining.