Which of the following statements correctly describes a competitive market?
A) Buyers and sellers negotiate prices before making exchanges.
B) The market price for the same good varies from seller to seller.
C) Sometimes, a single seller has the ability to dictate the market price.
D) The market price is determined by the interaction of demand and supply.
D
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Cross-price elasticity of demand is used to determine whether
a. a product is an inferior or normal good b. a product is a necessity or a luxury c. two products are substitutes or complements d. price and total revenue are directly or inversely related e. the product's demand curve is linear
If the U.S. dollar increases in value relative to other currencies, how does this affect the aggregate demand curve?
A) This will move the economy up along a stationary aggregate demand curve. B) This will move the economy down along a stationary aggregate demand curve. C) This will shift the aggregate demand curve to the left. D) This will shift the aggregate demand curve to the right.