The law of downward sloping demand states which of the following?
A. Food spending changes in the opposite direction as income changes.
B. When demand rises, supply falls.
C. Quantity response to price is elastic.
D. A larger quantity is demanded at a lower price than at a higher price, all other things held constant.
Ans: D. A larger quantity is demanded at a lower price than at a higher price, all other things held constant.
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A large number of firms in Richland sell energy drinks. However, each firm faces a downward sloping demand curve. The market for energy drinks in Richland is an example of a(n) ________
A) perfect competition B) monopolistic competition C) monopoly D) oligopoly
The permanent-income hypothesis can reconcile the cross-section and time-series consumption studies by incorporating the reasonable assumption that at any one time many people are rich because they are enjoying unusually high ________ income, causing
them to have an unusually ________ saving ratio. A) permanent, high B) permanent, low C) transitory, high D) transitory, low