An economist says: "The demand curve has two interpretations." What does the economist mean?
What will be an ideal response?
The first interpretation is that the demand curve shows the quantities of a good or service that consumers are willing and able to buy at each price, other things being equal. The second interpretation is that the demand curve is a willingness-and-ability-to-pay curve, so that for each quantity it shows the highest price that someone is willing and able to pay for one more unit.
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Rich and poor people have which of the following in common?
A) Scarcity B) Economizing behavior C) Pursuing the plans and projects in which they are interested D) All of the above. E) None of the above.
Charting observations on a semi-logarithmic graph will help the analyst to ascertain whether
A) absolute changes from period to period are constant. B) whether percentage changes from period to period are constant. C) whether percentage changes from period to period are declining. D) Both B and C