A consumer's demand curve
a. shows the quantity of a good or service that individual will demand at each different price
b. shows the quantity of a good or service that individual will demand at different levels of income
c. is derived by equating the income and substitution effects
d. slopes downward because the income effect offsets the substitution effect
e. will be vertical if the income effect outweighs the substitution effect
A
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All else equal, when oil prices increase, people are ________ to look for oil substitutes. This will ________ the number of years it will take to deplete the stock of oil
A) discouraged; increase B) discouraged; decrease C) encouraged; increase D) encouraged; decrease
A lower domestic price level raises aggregate expenditures and, therefore, shifts the aggregate demand curve to the right
a. True b. False Indicate whether the statement is true or false