Assume foreign beer is a normal good. If the incomes of demanders decreases,
A) the demand for foreign beer will increase.
B) the quantity supplied of foreign beer will increase.
C) the market output of foreign beer will increase.
D) all of the above will occur.
E) none of the above will occur.
E
You might also like to view...
Explain how the currency drain ratio affects the size of the money multiplier. In your explanation, suppose that in one round of the money creation process a bank gains $1 million in new deposits and reserves
Further suppose that the desired reserve ratio is 10 percent and the currency drain ratio is 50 percent.
Erin and Deidre, two residents of Ithaca, New York, are planning a trip to Boston. Erin, the sales manager for a large retailer, has to attend a business meeting
Deidre, a college student on vacation, is planning a leisurely trip to visit friends and relatives. Which of the following statements is true? A) Since there is no difference in the cost of producing air travel, airlines will not charge different prices to Erin and Deidre. B) An airline cannot price discriminate because buyers can resell their tickets through the Internet. C) An airline that price discriminates will charge Erin a higher price. D) An airline that price discriminates will charge Deidre a higher price.