The demand curve is downward sloping because
A) the price must rise to induce firms to increase quantity supplied.
B) a reduction in the price of a good causes individuals to increase their purchase of that good.
C) an increase in the price will cause a leftward shift in the demand curve.
D) all of the above.
B
Economics
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The above figure shows Dana's marginal benefit curve for ice cream. If the price of ice cream is $2 per gallon, then the maximum that Dana is willing to pay for the 8th gallon of ice cream is
A) $1. B) $2. C) $3. D) $5.
Economics
The Fed's purchase of government securities could
A) increase loans made by banks. B) be an effective anti-inflationary policy. C) decrease the price level and have no effect on real GDP. D) decrease bank reserves.
Economics