When a third party pays a larger and larger share of the purchasing price of a good, economic theory indicates that the
a. demand for the good will decline.
b. consumers of the good will have less and less incentive to economize on its use.
c. suppliers of the good will have a stronger incentive to provide the good at low prices.
d. prices of the good will tend to decline with the passage of time.
B
Economics
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When we hear on the news, "The Fed has lowered interest rates today," the Fed has most likely
A) raised the discount rate. B) lowered the required reserve ratio. C) raised the federal funds rate. D) purchased government bonds.
Economics
In the case where the spot and forward rates are equal, the currency is said to be selling
A) profitably. B) flat. C) normal. D) risky.
Economics