An increase in the price of butter in a country between the years 2010 and 2015 indicates:
a. a decrease in demand
b. the presence of a surplus.
c. a decrease in household earnings.
d. the presence of inflation.
d
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If the Herfindahl-Hirschman index (HHI) among the firms in the long distance telecommunications market were equal to 1755, when would the Federal Trade Commission probably challenge a proposed merger between any two of the firms?
A) It would challenge if the HHI would increase by more than 50 points. B) It would challenge if the HHI would increase by more than 100 points. C) It would challenge no matter what happened to the HHI because the market has so few firms. D) It would not challenge because the HHI is less than 1800.
The cross-price elasticity of demand between Coca-Cola and Pepsi-Cola is calculated by dividing
A) the percentage change in the price of Coca-Cola by the percentage change in the price of Pepsi-Cola. B) the percentage change in quantity demanded of Coca-Cola by the percentage change in the quantity demanded of Pepsi-Cola. C) the percentage change in the quantity demanded of Coca-Cola by the percentage change in the price of Pepsi-Cola. D) the percentage change in the price of Pepsi-Cola by the percentage change in quantity demanded of Coca-Cola.