Assuming that automobiles are normal goods, a rise in consumer income, other things being equal, will cause:
a. the demand curve for automobiles to shift to the left.
b. the demand curve for automobiles to shift to the right.
c. a downward movement along the demand curve for automobiles.
d. an upward movement along the demand curve for automobiles.
b
You might also like to view...
A public good such as a streetlight will not be provided by a private profit-seeking company because
a. the streetlight is also a merit good b. the streetlight is an exclusive and rival good c. it takes a government to maintain the streetlights, e.g., changing bulbs d. private companies can't compete with government in producing streetlights e. the benefit a person derives from having streetlights are less than the cost of installing streetlights
A firm that is a price maker can
a. limit output and raise prices. b. ignore the law of demand. c. ignore the elasticity of the demand for the product. d. both limit output and raise prices and ignore the elasticity of the demand for the product.