Using a change in supply and/or demand, explain the following phenomena:

a. All else constant, gasoline prices are higher in summer than winter months.
b. At the same time that the quality of personal computers has been increasing, the price of personal computers has been falling.

a. Demand for travel is higher in summer than winter months, which causes the demand for gasoline to be higher as well.
b. Supply (and quality) have increased as a result of technology improvements, while demand has not increased as rapidly, putting downward pressure on price.

Economics

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Indifference curves close to the origin are ________ those farther from the origin because of ________

A) better than; transitivity B) worse than; nonsatiation C) better than; completeness D) worse than; transitivity

Economics

Which of the following would shift the investment demand curve leftward?

a. Higher expected returns on investment b. A lower real interest rate c. A higher real interest rate d. Lower expected returns on investment

Economics