Each year Apple Computers produces a new line of IPods with greater storage capacity and more features. Sales continue to soar even though the prices each year rise as well
Is this a refutation of the law of demand or is there something else going on here that doesn't meet the eye?
The law of demand states that there will be a inverse relationship between price and quantity demanded all other things being equal. In this case the good itself is no longer the same good. Its storage capacity and other features have simply drawn more customers.
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According to the rule of 70,
a. if a country is growing at 14% per year, its output will double in approximately 5 years. b. if a country is growing at 10% per year, its output will double in approximately 7 years. c. if a country is growing at 2% per year, its output will double in approximately 35 years. d. all of the above are true.
When an externality is present in a market, and correcting it increases the efficiency of the market, we can conclude it is a:
A. negative externality. B. positive externality. C. network externality. D. either a negative or a positive externality.