Which of the following statements is FALSE?
A) If there is an increase in the demand for a product, consumers want to buy more of the product at each and every possible price.
B) A decrease in demand shifts the demand curve leftward toward the origin, while a decrease in quantity demanded involves a movement upward along a particular demand curve.
C) If the price of a good rises, quantity demanded of the good decreases and the demand curve shifts toward the origin as long as supply is static.
D) A change in the demand for a product is caused by factors other than changes in the product's price.
C
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Safe Bank has an outside display which has the time and temperature that is always correct. This is an example of
A) an interference in the workings of the price system. B) a breakdown in communication between the bank and its customers. C) a negative externality. D) a positive externality.
In a competitive market, excess demand for a good exists whenever
a. the current price is below the equilibrium price b. resources are scarce c. the quantity supplied at the current price exceeds the quantity demanded d. sellers are subject to the constraints imposed by input prices and technology e. the current price is above the equilibrium price